Income inequality impedes rural economic development. As the digital economy advances, e-commerce (EC) offers a novel solution to reduce rural income inequality. Based on the framework of the equality of opportunity theory, this research utilizes data from China Rural Revitalization Survey, using the RIF model and mediation effect model to investigate the influence and mechanisms of e-commerce operations (EOs) on the farmers’ income gap (FIG), while also analyzing the heterogeneity of EO’s effects on the FIG. Consequently, the impact of the varying scales and modes of EOs on the FIG is further examined. The findings indicate that EO can substantially diminish the FIG, as corroborated by robustness and endogeneity tests. The findings of the intermediate effect indicate that EO diminishes the FIG by reducing the disparity in labor endowment. The heterogeneity study results indicated that EOs are more effective in reducing the FIG in western China, major grain-producing areas, and mountainous areas. Further discussion reveals a stronger reduction effect of large-scale and platform EC. This study provides micro-level evidence that the digital economy empowers farmers for sustainable development and prosperity. The government should improve rural EC support and create a mechanism for disadvantaged rural populations. To reduce EC development discrepancies and promote farmer equity, specific assistance programs for undeveloped regions are needed. Local governments can also strengthen skill training programs for farmers, especially low-income ones, to boost labor skills. Finally, they can assist rural EC’s transformation to large scale and flat, maximize its role in employment, and narrow the FIG.
Although the literature has found that targeted poverty alleviation (TPA) policy has many positive effects, whether it has a negative impact on farmers’ credit has been under-analyzed. A regression discontinuity approach has been employed to estimate the TPA policy’s causal effects on credit default because the registered poor farmer was primarily determined by whether a farmer’s pre-policy income fell below a given poverty line. Using data from China Household Finance Survey in 2015 and 2017, we have found that China’s registered poor farmers have a higher probability of credit default. This is because registered poor farmers protected by TPA policy pursue higher risk economic activities, leading to a higher credit default. Further analysis has shown that credit default broadly occurs in married registered poor farmers. In contrast, it rarely occurs among those with high social capital. Our empirical results have suggested the Chinese government should improve the identification rules of registered poor farmers, such as subjective psychology, and strengthen the monitoring system of their participation in economic activities.
There is growing interest in the impact of climate change on agricultural labor supply in China, rigorous empirical evidence for this issue is insufficient. This potentially important channel through which climate change may affect agricultural labor supply has not received attention. Using a panel survey data of 100 administrative villages and 2977 farmers in China, we find that temperature and precipitation do affect farmers’ labor allocation, 1°C increase from the current average temperature will reduce agricultural labor supply by 0.252%, and 1mm increase from the current average rainfall will reduce agricultural labor supply by 0.001%. Climate change also leads to the decline of net agricultural income, which creates distorted incentives for households to over-supply labor to non-agriculture. Moreover, farmers with relatively lower risk tolerance preferred to reduce the current supply of agricultural labor when net agricultural income is projected to decrease under climate change scenarios.
1.The topic of the article lacks novelty, and there has been a lot of research on the influencing factors of the availability of microcredit, and the article does not highlight the novelty of the research. 2.The structure of the introduction of the...