Abstract
The rapid development of information and communication technology (ICT) has spurred the rise of rural e-commerce, creating new opportunities for farmers to increase their income. This study empirically examines the impact of rural e-commerce on farmers' income using a two-way fixed effects model, a spatial econometric model, and a group-regression model. Our results demonstrate that the continuous expansion of rural e-commerce does not necessarily lead to sustained income growth; instead, it exhibits an "inverted U-shaped" relationship with farmers' income. This impact is not limited to the local area but also affects neighboring regions. Furthermore, the inflection point of this "inverted U-shaped" impact occurs earlier in counties that are not among the top 100 in agricultural product e-commerce. Further analysis indicates that the presence of e-commerce associations and digital technological innovation can help mitigate the adverse effects of excessive e-commerce expansion on farmers' income. This study provides crucial insights into the scientific understanding of the relationship between ICT (as represented by rural e-commerce) and farmers' income. By understanding this dynamic, we can enable more effective use of ICT to promote the sustainable growth of farmers' income and the long-term prosperity of rural areas.
Recommended Citation
Dai, M.,
Xia, C.,
Zong, M.,
Jia, C.,
&
Mahmood, I.
(in press).
Can Rural E-commerce Continue to Promote the Improvement of Farmers’ Income? Empirical Evidence from Taobao Village.
Information Technology for Development.
Available at:
https://aisel.aisnet.org/itd_forthcoming/27