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Using data from the China Household Finance Survey (CHFS) from 2013 to 2021 and a difference-in-differences (DID) model, we examine the impact of China’s rural e-commerce demonstration county program (REDCP) on household agricultural income in rural areas. The results show that the REDCP significantly increases household agricultural income. Mechanism analysis reveals that the REDCP works through fostering distinctive local industries, expanding logistics infrastructure, and encouraging agricultural mechanization. Moreover, heterogeneity analysis shows that this effect is more pronounced in areas with developed transportation networks and among households with high financial literacy. Given the centrality of agricultural income to rural livelihoods, this paper contributes to the literature by showing how the REDCP reshapes agricultural production to improve agricultural income.
Guo et al. (Mon,) studied this question.