Regional Poverty Alleviation Partnership and E-Commerce Trade

84 Pages Posted: 25 May 2023 Last revised: 20 Feb 2024

See all articles by Zemin (Zachary) Zhong

Zemin (Zachary) Zhong

University of Toronto, Rotman School of Management

Wenyu Zhou

Zhejiang University

Jiewei Li

HEC Lausanne

Peng Li

Alibaba Group

Date Written: May 22, 2023

Abstract

How do online platforms contribute to inclusive growth policies? In this study, we examine how the East-West Poverty Alleviation Partnership, which pairs rich cities in East China with economically disadvantaged cities in West China, affects e-commerce trade. Using proprietary trade-flow data from Alibaba, we find that the partnership boosts e-commerce trade between partnered cities. This effect is asymmetric, as it increases exports from West China to East China, but not the other way around. The effect is also particularly strong for product categories in which the West has a comparative advantage. Additionally, the results indicate that the partnership benefits both big and small sellers equally. In exploring the underlying mechanisms, we find migration driven by the partnership can partially explain the effect.

Keywords: Inequality, Inclusive Growth, E-Commerce, China

JEL Classification: I38, L81, O12, O18, P25, P36

Suggested Citation

Zhong, Zemin (Zachary) and Zhou, Wenyu and Li, Jiewei and Li, Peng, Regional Poverty Alleviation Partnership and E-Commerce Trade (May 22, 2023). Available at SSRN: https://ssrn.com/abstract=4455034 or http://dx.doi.org/10.2139/ssrn.4455034

Zemin (Zachary) Zhong

University of Toronto, Rotman School of Management ( email )

105 St. George St.
Rotman School of Management
Toronto, Ontario M5S 3E6
Canada

HOME PAGE: http://zacharyzhong.com

Wenyu Zhou (Contact Author)

Zhejiang University ( email )

38 Zheda Road
Hangzhou, Zhejiang 310058
China

Jiewei Li

HEC Lausanne

Switzerland

Peng Li

Alibaba Group

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
182
Abstract Views
680
Rank
306,267
PlumX Metrics