Although many researchers have studied the benefits of the applications of e-commerce, few have examined the relationship between e-commerce and its effects on household income distribution. This study explores the effects of e-commerce development on household income distribution in different regions of China.
This study uses a two-way fixed effect model for empirical analysis based on matched data from the E-commerce Development Index and the China Family Panel Studies database. The instrumental variables method is used for robustness testing.
The research findings indicate the following: (1) The development of e-commerce significantly reduces income inequality among Chinese households. For every 10% increase in e-commerce development, the income gap in China shrinks by 2.38%, with a reduction of 2.97 and 0.47% in urban and rural areas, respectively. (2) The reduction in income inequality due to e-commerce development is more pronounced in economically advanced regions. (3) The development of e-commerce in the eastern and western regions has a greater impact on reducing income inequality in urban than rural areas. In contrast, the opposite effect is observed in the central region.
This study contributes to existing research by examining the effects of e-commerce development on household income distribution. It has important theoretical and practical implications for issues such as narrowing the urban–rural gap.
