Expanding Rural Consumer Markets: The Role of E-commerce Development and Market Transparency

Abstract

The rise of e-commerce, underpinned by information technologies such as the internet and big data, has profoundly reshaped traditional consumption patterns and spurred the growth of rural consumer markets in China. Using provincial panel data from 2013 to 2022, this study empirically examines the impact of e-commerce development on the expansion of rural consumer markets, with a particular focus on the mediating role of market transparency. The results indicate that e-commerce significantly contributes to market expansion by broadening product availability and facilitating access to consumption channels—a finding that remains robust across a series of stability checks. Further analysis reveals that e-commerce fosters greater price competition and enhances market transparency, which in turn mediates its positive effect on rural market growth. Based on these insights, the study concludes with policy recommendations aimed at strengthening e-commerce infrastructure, advancing digital literacy and skills training, and implementing supportive incentives to further promote the development of rural consumer markets.