The Impact of the Farmers’ Participation in Rural Electronic Commerce on Income Inequality in China: A Perspective of Activity Theory

Prior studies concerning rural electronic commerce have predominantly examined its capacity to enhance farmers’ income, while largely ignoring its considerable potential in alleviating income disparity within rural areas. From the analytical lens of activity theory, this study evaluates how farmers’ engagement in rural electronic commerce affects intra-rural income inequality in China. Utilizing a nationally representative dataset of rural households, our results demonstrate that the scale of agricultural product sales through electronic commerce exerts a substantial influence on mitigating intra-rural income inequality, and these findings withstand various robustness tests. The analysis of mechanisms indicates that farmers’ participation in rural electronic commerce has considerably stimulated electronic commerce entrepreneurship, widened sales channels, and improved rural logistics accessibility. Furthermore, the influence proves more substantial among rural households possessing lower human capital and in eastern regions. Moreover, the income growth of middle-income groups serves as a key driver behind the reduction in intra-rural income inequality. The findings provide novel empirical evidence that deepens comprehension of the relationship between rural electronic commerce and intra-rural income inequality in China.