Do farmers gain internet dividends from E-commerce adoption? Evidence from China

February 25, 2021 - Xiaokang Li, Hongdong Guo, Songqing Jin<jins@msu.edu>, Wanglin Ma, Yiwu Zeng

Li, X., Guo, H., Jin, S., Ma, W., & Zeng, Y. (2021). Do farmers gain internet dividends from E-commerce adoption? Evidence from China. Food Policy, 102024.

Abstract

This study examines the effects of e-commerce adoption on household income, using survey data of 1,030 households in China. The combination of propensity score matching and difference-in-difference method is employed to address the sample selection bias associated with e-commerce adoption. The results show that e-commerce adopters obtain significantly higher income than non-adopters, and such a significant and large income gain is mainly contributed by the significant increase in sales income. E-commerce adoption has a significant and negative impact on wage income due to the labor substitution effect, while it affects transfer income insignificantly. Additional analysis reveals that the income effects of e-commerce adoption are heterogeneous across geographic locations and household-level characteristics.

 

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