Regional Poverty Alleviation Partnership and E-Commerce Trade

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