Does e-commerce offer a solution to rural depopulation? Evidence from China

Ongoing rural depopulation is a serious concern in China and worldwide. Given the rapid development of ecommerce in rural China, this study examines the impact of e-commerce on rural depopulation and explores its underlying pathways. Employing a staggered difference-in-differences estimation using combined county-level panel data, our research reveals that e-commerce significantly mitigates rural depopulation, resulting in a 1.4 % increase in the population growth rate. Furthermore, this study identifies several pathways through which ecommerce counteracts rural depopulation, encompassing the creation of employment opportunities, the cultivation of rural entrepreneurship, the augmentation of rural income and its growth, as well as the enhancement of rural infrastructure and public services. The findings propose e-commerce as a potential solution to address the challenge of rural depopulation.