How Does E-Commerce Policy Affect Consumption Disparities of Rural Households?——Evidence from China

In the context of China's ongoing efforts to promote countryside revitalization and facilitate domestic economic circulation, it is of great significance to reduce the consumption disparity among rural households and unleash the consumption potential in the countryside. Based on data from China Family Panel Studies, this paper adopts a staggered difference-in-differences method to assess the impact of the e-commerce to enter rural areas on the consumption disparity among rural households. Findings:the comprehensive demonstration work of promoting e-commerce to enter rural areas has reduced the consumption disparity among rural households through the following mechanisms. Firstly, this policy initiative has mitigated the consumption-inhibiting effect on rural household consumption due to the local market size and external market accessibility by promoting the distribution of consumer goods to villages. Secondly, this policy initiative has also increased the agricultural income of rural households and reduced their consumption disparity by distributing farm produce to cities and enhancing the agricultural income of rural households. Moreover, the work is characterized by inclusive growth and is not susceptible to the “elite capture” phenomenon.