Cross-Border E-Commerce as a Way of Alleviating and Reducing Poverty: The Case of China

Abstract

This study aims to examine the impact of cross-border e-commerce on rural income in China. Economic reforms in China since 1978 have led to the emancipation of approximately 700 million individuals from poverty. Recent rural economic growth in China has been significantly influenced by the widespread adoption of e-commerce, which is being hailed as a potent tool for reducing poverty in rural regions. Through enhanced access to government services, banking facilities, healthcare, and other vital amenities, as well as the provision of global market opportunities for goods and services, e-commerce exhibits the potential to have a profound impact on poverty alleviation. The study leverages data from village-level surveys conducted in rural areas. The analysis is conducted using the Structural Equation Modeling (SEM) model. The findings indicate that cross-border e-commerce plays a pivotal role in boosting rural income levels, enabling local communities to participate in international trade, and expanding their market presence. The conclusions underscore the significance of e-commerce as a driving force in poverty alleviation initiatives in rural China.