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<p>Consumption diversity in rural areas of developing countries remains relatively low, and e-commerce penetration in villages offers a potential solution to address this challenge. Employing China’s National Rural E-commerce Comprehensive Demonstration Policy as a quasi-natural experiment and using a staggered difference-in-differences method alongside household-level survey data from China for the years 2011 to 2019, this study examines the impact of e-commerce penetration in villages on rural household consumption diversity and its underlying mechanisms. The findings indicate that e-commerce penetration significantly increases the consumption diversity index of rural households by 0.01, a result that remains robust across various checks. Increasing agricultural income, enhancing digital literacy and improving rural logistics and communications infrastructure are the three key mechanisms through which e-commerce penetration enhances consumption diversity among rural households. Heterogeneity analysis reveals that e-commerce penetration primarily enhances consumption diversity among low-endowment rural households.</p>

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Village e-commerce enhances rural household consumption diversity: evidence from rural China

  • 期刊论文

  • 发表日期：

    2025年11月19日

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  • Xiaoyong Xiao,
  • Yong Xia,
  • Zhaoyang Xiang,
  • Yishuo Hu

摘要

Consumption diversity in rural areas of developing countries remains relatively low, and e-commerce penetration in villages offers a potential solution to address this challenge. Employing China’s National Rural E-commerce Comprehensive Demonstration Policy as a quasi-natural experiment and using a staggered difference-in-differences method alongside household-level survey data from China for the years 2011 to 2019, this study examines the impact of e-commerce penetration in villages on rural household consumption diversity and its underlying mechanisms. The findings indicate that e-commerce penetration significantly increases the consumption diversity index of rural households by 0.01, a result that remains robust across various checks. Increasing agricultural income, enhancing digital literacy and improving rural logistics and communications infrastructure are the three key mechanisms through which e-commerce penetration enhances consumption diversity among rural households. Heterogeneity analysis reveals that e-commerce penetration primarily enhances consumption diversity among low-endowment rural households.