Can E-commerce development alleviate farm household poverty vulnerability: Evidence from rural China

The development of e-commerce holds great significance in promoting shared prosperity. This study examines the impact of the development of regional e-commerce on the vulnerability of rural households to poverty from an ex-ante perspective, based on the China Household Finance Survey (CHFS) three-period household data. The findings demonstrate a substantial reduction in the poverty vulnerability of rural households due to e-commerce development. Furthermore, e-commerce development mitigates poverty vulnerability through the promotion of off-farm entrepreneurial activities among farm households and an increased likelihood of land transfer. Additionally, this study examines the heterogeneous effects of e-commerce development on the vulnerability of rural households to poverty alleviation. It is observed that households with older heads, lower income levels, and lower average educational attainment tend to benefit more from e-commerce development, reflecting the "propoor" nature of e-commerce promotion in China. Overall, this study enhances our comprehension of the welfare implications of e-commerce development for farmers, offering valuable insights for other developing countries or regions engaged in rural digitalization projects to promote economic development.