Development of E-commerce and Common Prosperity of Rural Areas
Common prosperity emphasizes inclusive growth with equal opportunities,focusing on participation and equitable sharing.The most formidable challenge of common prosperity rests in rural areas,where unequal opportunities and income disparities surpass those in cities and between urban and rural areas,becoming the primary contributor to the widening income gap in China.Presently,the fusion of digital technology and economic development has birthed the digital economy,emerging as a new engine propelling China's economic growth.As a vivid manifestation of the digital economy in rural areas,rural e-commerce has profoundly transformed rural society.However,technological revolutions,while significantly enhancing productivity and elevating human welfare,also possess another facet,which is shaping novel mechanisms of societal development and fostering new production relations,social strata,and primary contradictions.Individuals exhibit inherent disparities in their adaptation to new technologies,reflecting variances between innate endowments and acquired capabilities.Specifically,the lack and continual deprivation of feasible capabilities among vulnerable groups render them"refugees"in the digital era.Utilizing the nationwide"Comprehensive Demonstration of E-commerce in Rural Areas"policy as a quasi-natural experiment,this article uses micro-panel data from fixed observation points in rural areas across China from 2010 to 2017 to explore the impact and mechanisms of rural e-commerce development on income inequality among farmers.The contributions of this article are as follows.First,integrating rural household income growth and income inequality within the dual objectives of common prosperity and growth constriction deepens our understanding of the current connotations of income inequality in China.Second,drawing from Amartya Sen's capability theory and considering the heterogeneity of farmers'abilities and economic decision-making,it breaks through the logical chain that impacts income disparities among different strata of farmers due to the development of rural e-commerce.Third,based on Romer's"environment-effort"binary analytical framework,this article offers valuable insights into eliminating the"digital divide"and establishing sustainable mechanisms for stable income growth among low-income farmers.Fourth,utilizing eight-phase micro-longitudinal panel data from fixed observation points in rural China,this article constructs a difference-in-differences model and addresses the heterogeneity issues of treatment effects,thereby more accurately identifying the impact of rural e-commerce development on income inequality in rural households.Research has found that rural e-commerce not only elevates the overall income levels of farmers but also exacerbates income disparities within rural areas,specifically favoring income growth among the"elite"population more than the"vulnerable"groups.How does rural e-commerce amplify income inequality among farmers?From the perspectives of limited capacities and differences in economic behavioral choices among farmers,this article analyzes the micro mechanisms from theoretical and empirical perspectives to elucidate the impact of rural e-commerce on income inequality.The mechanism analysis reveals that the expansion of rural e-commerce amplifies the differences between high-and low-income farmers in their choices of nonagricultural entrepreneurship,agricultural ventures,and structural changes in farming activities,thereby widening the income gap between them.The heterogeneity analysis demonstrates that the development of both traditional and innovative digital infrastructures,the growth of digital finance,and the enhancement of human capital among village cadres can foster a more equitable competitive environment,thereby alleviating income inequality caused by rural e-commerce.This study enriches the literature on digital economy and common prosperity and provides some policy implications.First,the government should focus on digital capital development to enhance the viability of low-income groups.Through"digital to the countryside"and other ways to go to the grassroots,transferring digital technology knowledge to low-income farmers should be popularized to break their fear and ignorance of digital technology such as e-commerce.Second,external constraints should be removed to build an inclusive environment of"fair opportunities."Specifically,the environment of"fair opportunity"should break down the following barriers:digital divide,disorderly competition risk,and rural governance.