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Journal of Integrative Agriculture  2021, Vol. 20 Issue (4): 998-1011    DOI: 10.1016/S2095-3119(20)63422-0
Section 3: Innovation and inclusive development for poverty alleviation Advanced Online Publication | Current Issue | Archive | Adv Search |
Poverty alleviation through e-commerce: Village involvement and demonstration policies in rural China
PENG Chao1*, MA Biao2*, ZHANG Chen3 
Administration and Management Institute, Ministry of Agriculture and Rural Affairs, Beijing 102208, P.R.China
2 School of Agricultural Economics and Rural Development, Renmin University of China, Beijing 100872, P.R.China
3 Institute of Population and Labor Economics, Chinese Academy of Social Sciences, Beijing 100006, P.R.China
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The diffusion of e-commerce has played a significant role in recent rural economic development in China.  E-commerce is also considered as an efficient channel to alleviate poverty in rural China.  Voluminous studies have investigated the contribution of e-commerce to agricultural development, yet it is lacking empirical evidence as to the effects of e-commerce on rural poverty alleviation.  Since the year of 2014, in order to develop rural e-commerce, Chinese government launched the National Rural E-commerce Comprehensive Demonstration Project.  This gradual involvement policy offered a natural experiment for evaluation of e-commerce.  Based on village-level survey data from rural China and Heckit method, our study finds that rural e-commerce has a signi?cantly positive effect on rural income.  Moreover, the effect is inverted U-shaped for the relative-poverty villages.  The estimation of the propensity scores matching model confirms that the results are robust.  The following policy recommendations are proposed: (1) policy support to rural e-commerce should prioritize the poverty-stricken villages.  By doing so, the marginal income effects of e-commerce will be maximized.  (2) Investment in internet infrastructure and establishment of human resources for e-commerce in rural areas will have spillover effects, increasing rural income through the “digital dividend”.
Keywords:   poverty alleviation        income        National Rural E-commerce Comprehensive Demonstration Project        Heckit method  
Received: 02 June 2020   Accepted:
Fund: The authors gratefully acknowledge the financial support from the National Natural Science Foundation of China (71673274); the Outstanding Innovative Talents Cultivation Funded Programs 2019 of Renmin University of China.
Corresponding Authors:  Correspondence PENG Chao, E-mail:; MA Biao, E-mail:    
About author:  * These authors contributed equally to this study.

Cite this article: 

PENG Chao, MA Biao, ZHANG Chen. 2021. Poverty alleviation through e-commerce: Village involvement and demonstration policies in rural China. Journal of Integrative Agriculture, 20(4): 998-1011.

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