Exploring the Income-Increasing Benefits of Rural E-Commerce in China: Implications for the Sustainable Development of Farmers

Abstract

The slowdown in income not only hinders the sustainable development of farmers but also exacerbates ecological and environmental problems. Likewise, the digital economy model represented by e-commerce has become a key path for growing farmers’ income. This article is based on 2020 China Rural Revitalization Survey data and uses the OLS and mediation effect models to examine the impact and mechanism of e-commerce operations on farmers’ income. The research results indicate that e-commerce operations can significantly improve the income level of farmers. After robustness and endogeneity tests, this conclusion still holds. The mechanism analysis results indicate that e-commerce operations promote farmers’ income growth by enhancing information acquisition, reducing operating costs, and enhancing financial support. The results of the heterogeneity analysis indicate that the impact of e-commerce on farmers’ income is heterogeneous in terms of income structure, education level, and regional distribution. Specifically, e-commerce significantly increases farmers’ agricultural operating income, non-agricultural operating income, and transfer income but significantly reduces their wage income. At the same time, e-commerce has a more significant income-increasing effect on highly educated and central and western farmers. Therefore, in promoting the development of a rural digital economy, it is necessary to improve the supporting facilities of e-commerce in rural areas; strengthen the supply of information, technology, capital, talent, and other elements; continue to improve the inclusiveness of rural e-commerce; and promote the sustainable growth of farmers’ income. The above findings not only provide new channels and ideas for farmers to increase income through e-commerce operations, but also help relevant decision-making departments to formulate new policies to promote farmers’ income growth and the development of e-commerce in China.