Impact of the National Rural E‐Commerce Comprehensive Demonstration Policy on Rural Labour Force Participation

ABSTRACT The expansion of the digital economy, particularly e‐commerce, has become a key driver of China's pursuit of high‐quality economic growth. This study examines the impact of the National Rural E‐commerce Comprehensive Demonstration Policy (NRECDP) on rural labour force participation in e‐commerce. Using a staggered difference‐in‐differences design and panel data from the National Fixed‐site Rural Survey (NFRS), we evaluate how the policy has shaped e‐commerce engagement in rural areas. The result shows that NRECDP significantly increased the share of the rural labour force involved in e‐commerce, raising village‐level participation rates by 0.30% during the pilot period. The effect was stronger in villages with lower human capital and those located near urban areas, indicating marked regional heterogeneity. Mechanism analysis suggests that the policy promoted rural e‐commerce mainly by lowering transaction costs, improving digital payment capacity and strengthening the local e‐commerce environment. These findings highlight the importance of maintaining targeted support policies to sustain rural e‐commerce development.