Can E-commerce Going to the Countryside Reduce Rural Household Consumption Inequality?A Quasi-natural Experiment Based on the"Comprehensive Demonstration of E-commerce Going to Rural Areas"Policy
Based on the data of China Household Finance Survey from 2013 to 2021 and the quasi-natural experiment of"Comprehensive demonstration of e-commerce going to rural areas"policy,this paper empirically analyzes the impact of the e-commerce going to the countryside policy on rural household consumption inequality by using a staggered Difference-in-Differences model.The study finds that the e-commerce going to the countryside policy significantly reduces the consumption inequality of rural households.With a series of robustness checks,the above conclusion still holds.Mechanism analysis shows that the e-commerce going to the countryside policy reduces the inequality of rural household consumption by improving the consumption of rural households with low endowments(low-income,middle-aged and elderly,low educational attainment,and low social capital),improving the digital ability of rural households,and strengthening the ability of rural household consumption smoothing.Further analysis shows that the e-commerce going to the countryside policy has a significant mitigating effect on consumption inequality among rural households in regions with underdeveloped transportation,non-plain areas,those far away from farmers'markets and prefecture-level cities,and those with low information attention and low education level,indicating that the quasi-natural experiment of"Comprehensive demonstration of e-commerce going to rural areas"policy can reduce the expansion of transaction costs on rural household consumption inequality.This study provides important empirical evidence for the reduction of rural household consumption inequality by the e-commerce going to the countryside policy,in order to provide reference for making policies to achieve common prosperity.
Digital EconomyE-commerce Going to the CountrysideConsumption Inequality,Common Prosperity,Difference-in-Differences
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