International Review of Economics and Finance 95 (2024) 103505

Contents lists available at ScienceDirect

International Review of Economics and Finance

journal homepage: www.elsevier.com/locate/iref

Does rural e-commerce improve the economic resilience of

family farms?
Zengjian Huang a , Leyi Wang b , Jing Meng c, *
a
School of E-Commerce and Logistics, Suzhou Institute of Trade & Commerce, Suzhou, 215000, China
b
School of Agricultural Economics and Rural Development, Renmin University of China, Beijing, 100872, China
c
School of Economics and Management, Hubei Business College, Wuhan, 430070, China

A R T I C L E I N F O A B S T R A C T

Keywords: E-commerce and other digital economies are emerging drivers for high-quality development in
Economic resilience the Chinese economy. Based on the e-commerce plan in rural China, this paper investigates the
Rural e-commerce effect of e-commerce development on the economic resilience of family farms, using data from
Family farms
110,574 family farms in China from 2013 to 2021 and applying the staggered DID method. The
China
results show that e-commerce development significantly enhances the resilience of family farms.
Mechanism tests reveal that e-commerce policy substantially reduces the financing constraints of
family farms and curbs underinvestment, thereby boosting their resilience. However, the effect on
family farms with overinvestment is not significant. Additionally, the analysis of heterogeneity
indicates that e-commerce has a greater impact on the resilience of family farms in areas with
better institutional quality. Regarding the development status of the farm, the impact of e-com­
merce on resilience is greater in large-scale and capital-intensive family farms. Overall, this study
sheds light on the actual impact of rural e-commerce in China on the economic resilience of
family farms and offers valuable empirical insights for the revitalization of rural areas in devel­
oping countries.

1. Introduction

Over the past several years, natural disasters, ecological environment deterioration, macroeconomic shocks, and uncertainty about
future market developments have led to rising agricultural production risks and centralization in many low-income countries. It often
feels like disruption itself has become ‘the new normal’ (Zolli & Healy, 2012). These turbulences and uncertainties pose challenges for
farmers, and it is not surprising that the number of farms is decreasing (Darnhofer, Lamine, Strauss, & Navarrete, 2016). Farms play a
critical role in maintaining social cohesion, producing food, providing energy from renewable resources, offering recreational and
preserving the cultural landscape (Renting et al., 2008; Seuneke & Bock, 2015). However, the process of agricultural production in
family farms is a intricate interweaving of natural reproduction and economic reproduction (de Mey et al., 2016). They not only face
more severe natural risks and price risks than traditional smallholders but also, as a new phenomenon, encounter policy risks, financial
risks, credit risks, social risks, etc. Additionally, due to their weaker resilience to risks, once they encounter significant operational
risks, they may suffer a devastating blow (Duden & Offermann, 2020; Girdziute, Slavickiene, & Vaitkevicius, 2014).
In direct response, international development and relief agencies have increasingly focused on the concept of resilience. They have

* Corresponding author. 632 Xiongchu Street, Hongshan District, Wuhan City, Hubei Province, China.
E-mail address: [email protected] (J. Meng).

https://doi.org/10.1016/j.iref.2024.103505
Received 17 June 2024; Received in revised form 2 August 2024; Accepted 14 August 2024
Available online 15 August 2024
1059-0560/© 2024 Published by Elsevier Inc.
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

invested significant funding, programming, and research into “building resilience” (Cisse & Barrett, 2018). Resilience is generally
defined as “the capacity of a system to absorb disturbance and reorganize while undergoing change so as to still retain essentially the
same function, structure, identity, and feedbacks” (Walker, Hollin, Carpenter, & Kinzig, 2004). It is widely recognized that resilience
plays a critical role in maintaining the viability of farming communities. Family farm resilience specifically refers to the ability of
farmers to reconfigure, recombine, restructure, and reallocate resources in response to changes in the external environment (Marsh &
Stock, 2006). This study focuses on the economic resilience of family farms. Economic resilience plays a crucial role in helping farmers
adapt and recover more effectively in the face of external shocks, market fluctuations, or disasters (Volkov et al., 2021). This capability
allows them to respond more flexibly to the ever-changing conditions of the market.
Despite the Chinese government’s large-scale investments in transportation infrastructure like highways and railways in the past,
the overall level of economic development in rural areas in China remains relatively low (Y. Huang & Zong, 2020; Qin, Wu, & Shan,
2022). The lack of market accessibility caused by geographical factors has been a significant obstacle to the development of remote
rural areas (Castella, Manh, Kam, Villano, & Tronche, 2005). To address this issue, the government has adopted new measures to
revitalize rural areas, such as developing e-commerce. As part of the rural revitalization strategy, China has provided significant
financial support to e-commerce demonstration counties, with each county receiving approximately RMB 20 million. A total of 1613
demonstration counties were supported, with a total investment of around RMB 32.26 billion from 2014 to 2021. In 2019, China’s
online retail sales of agricultural products reached RMB 417 billion, of which 97 billion yuan came from rural areas (M. Liu, Min, Ma, &
Liu, 2021). Despite the United Nations Development Programme’s praise of China’s development-oriented poverty alleviation in the
2018 Human Development Report, some have questioned the long-term effectiveness of these measures.
Since 2014, China has been executing a rural modernization plan with a primary focus on promoting e-commerce. The plan en­
compasses the establishment of a public service system for rural e-commerce, the enhancement of infrastructure for logistics nodes,
public warehousing, and distribution systems, as well as the development of leaders in rural e-commerce entrepreneurship. Moreover,
construction and renovation activities have been undertaken for county-level e-commerce centers and village-level e-commerce ser­
vice stations, facilitating the creation of training and big data statistical systems for rural e-commerce. Specific implementation plans
for comprehensive rural e-commerce demonstrations have been unveiled in each region, accompanied by rosters of demonstration
counties. The central government allocates financial support of 20 million RMB for each demonstration county, and the Ministry of
Commerce conducts annual assessments, amplifying support for regions with notable achievements while revoking demonstration
qualifications for areas that fall short of standards. The comprehensive e-commerce demonstration county project has steadily pro­
gressed in stages, distinct from other rural revitalization plans. The timelines and locations of other policies do not align with the e-
commerce demonstration county plan, facilitating the exclusion of their influence in the analysis. This establishes conditions for
determining policy effects through quasi-natural experimental analysis.
Currently, there is much controversy in the existing literature. While some empirical studies have found that the popularization of
information infrastructure can improve farmers’ ability to obtain market information, provide convenience for agricultural products to
enter the market, and increase labor productivity (Das, 2014), others argue that the actual effect of e-commerce may be overestimated
(Nicole, Max, & Wortman, 2001). Moreover, agricultural resilience is generally considered to be driven by internal forces within
agriculture and rural areas, rather than external policies (Rathi, 2022). Chinese rural families have been slow to adopt e-commerce for
selling agricultural products, particularly in remote areas where expansion has been challenging (M. Liu, Zhang, Gao, & Huang, 2020).
Moreover, the "platform effect" of e-commerce can exacerbate the concentration of interests and values in the hands of a few, leading to
fewer benefits for rural family farms (Schwab & James, 2016). Existing literature mainly focuses on the relationship between farm
resilience and farm diversification, social networks, and the role of farmers as decision-makers (Darnhofer, 2014; Meuwissen et al.,
2018). It also examines the impact of e-commerce on agricultural production efficiency and farmers’ income (Chen, Guo, Zhang, & Jin,
2022; W. Li & He, 2024). However, there is limited investigation into the interaction between e-commerce and farm resilience.
However, the effectiveness of rural e-commerce, heavily promoted as a tool for rural revitalization in China, varies significantly
among different types of family farms. This variation can be attributed to several factors, including disparities in technology access,
varied levels of infrastructure development across regions, and differences in farm size and type, all of which influence the adoption
and impact of e-commerce. For instance, larger and more commercially oriented farms might leverage e-commerce more effectively
due to their better access to necessary infrastructure and higher levels of business acumen (X. Li, Guo, Jin, Ma, & Zeng, 2021).
Moreover, the role of e-commerce in mitigating traditional market access barriers can vary significantly based on local economic
conditions and the specific logistical challenges each area faces (Mei, Sjarif, Mulia, & Jayanti, 2022). A more detailed examination of
these application differences and the underlying reasons can provide deeper insights into how to tailor e-commerce strategies to meet
the specific needs and conditions of different farm types, thereby enhancing the overall effectiveness of rural e-commerce initiatives.
Can rural e-commerce policies, as the most popularized policy for digital rural construction, activate rural development vitality by
improving the economic resilience of family farms and enhancing their ability to withstand uncertain impacts? If so, what is the
mechanism behind it? Answering these questions can clarify the relationship between rural e-commerce and the economic resilience of
family farms, expand related research on promoting rural revitalization through e-commerce, and offer theoretical value. Additionally,
it is of great practical significance to evaluate the implementation effect of rural e-commerce policies, guide the high-quality devel­
opment of rural e-commerce, and promote the smooth implementation of rural revitalization strategies. This can help China’s poverty
alleviation experience provide a reference for most developing countries in the world to solve their own poverty problems.
The following is the remainder of our study. In section 2, we discussed the theory and hypotheses. In the next section (section 3), we
will discuss the model design and variable selection in detail. Then, in section 4, we will discuss the empirical research and present the
results that verify our hypotheses. Finally, we will provide a summary of the entire paper in the conclusion.

2
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

2. Literature review and hypotheses

2.1. E-commerce and economic resilience of family farms

According to Empowerment theory, empowerment is a construct that connects individual strengths and competencies, natural
helping systems, and proactive behaviors to social policy and social change (Rappaport, 1981). Empowerment at the organizational
level means providing opportunities for resource allocation, participation in decision-making, and value enhancement (Appelbaum,
Hébert, & Leroux, 1999). At the individual level, it means the ability to acquire and use resources to achieve personal goals (Kanter &
Takai, 1993), and stimulate personal vitality (Spreitzer, 1995). Empowerment can be viewed as a process of giving family farms greater
space for action while enhancing their abilities (Barner, 1994). E-commerce, with its widespread popularity, low learning costs, and
ease of adoption, has emerged as a valuable tool for empowering and bolstering the resilience of family farms (Pahwa & Jaller, 2022).
The implementation of policies promoting e-commerce in rural areas has opened up new opportunities for family farms, facilitating the
development of a public service system for rural e-commerce, and enhancing infrastructure for logistics nodes, warehousing, and
distribution systems. By empowering farmers with opportunities to participate in decision-making, they can effectively leverage
e-commerce platforms, access resources, enhance operational capabilities, and bolster competitiveness in the market.
Commerce empowerment involves effectively integrating e-commerce technology and empowerment. As "new professional
farmers," family farm owners possess higher professional literacy and business capabilities and can use e-commerce technology to
achieve management objectives. The process of e-commerce empowerment involves endowing individuals with abilities, rights, re­
sources, and vitality. First, e-commerce platforms can empower family farm owners and achieve an effect and scale effect, reduce costs,
and increase efficiency while tapping into their potential (Fan, Wang, & Ying, 2023). Second, by empowering objects through or­
ganization, the platforms can leverage their technological advantages, optimize processes, and activate innovation. Third, by
empowering objects through resources, individuals’ ability to acquire, control, and manage resources can be enhanced by leveraging
e-commerce’s strong popularity. Fourth, empowering objects through psychology can enhance individuals’ confidence, stimulate
personal initiative to learn, and create a positive e-commerce atmosphere. The comprehensive policy support, coupled with
empowerment theory, has fostered a more favorable operational environment for family farms, enhancing their ability to adapt to the
dynamic changes in the market and external conditions. This article proposes the following assumptions:
H1. The e-commerce policy positively contributes to strengthening the economic resilience of family farms.

2.2. E-commerce, financing constraints, and economic resilience of family farms

Family farms are facing a range of difficulties, with the issue of rural financial credit constraints becoming increasingly prominent
(Bojnec & Ferto, 2016). Chinese family farms continue to face limited financing channels and high financing costs due to the
vulnerability of agricultural production, lagging rural financial institutions, and imperfect external fiscal policy (Wang, Sun, Wu, &
Ieee, 2021). The long-standing urban-rural dual structure in China has resulted in a relatively insufficient number of financial in­
stitutions in rural areas, with some institutions closing their branches in counties and below, leaving agricultural and rural areas with
insufficient financial services. Furthermore, most relatively affluent urban residents in China have already enjoyed financial and in­
formation services and have a credit record, whereas those who lack a credit record are mainly from rural areas (Zhang, Zhang, Wan, &
Luo, 2020). Traditional financial institutions cannot evaluate the creditworthiness of customers based on historical information due to
information asymmetry, and based on risk control considerations, they are reluctant to provide credit and financing services to family
farmers without a credit record (T. Liu, He, & Turvey, 2021).
However, the emergence of e-commerce has brought significant changes for family farm owners without credit records. Trans­
actions on e-commerce platforms, Alipay usage, and small loan records all provide real-time credit records. Financial institutions use
scientific models to analyze a large amount of historical data accumulated from farmers, predicting the credit worthiness of those
without prior credit history and solving the problem of difficult credit rating caused by information asymmetry (Jensen, 2007; Kabbiri,
Dora, Kumar, Elepu, & Gellynck, 2018). In addition, financial institutions have improved the financing difficulties of family farms by
providing financing services to farmers who have business relationships with e-commerce companies (Francis, Blumenstock, &
Robinson, 2017), increasing the availability of financial services for family farms. Financial support measures offer family farms
increased financial flexibility, allowing them to secure capital for investments in land, machinery, and new technology. This, in turn,
enables them to operate and develop more adaptively amidst market fluctuations and uncertainties. Therefore, we propose the
following research hypothesis:
H2. The e-commerce policy can alleviate the financing constraints of family farms, thereby enhancing economic resilience.

2.3. E-commerce, investment efficiency, and economic resilience of family farms

On the one hand, for underinvestment, the economic resilience level of most family farms in rural areas heavily depends on the
output and sales of agricultural products. However, the problem of information asymmetry caused by poor transportation and limited
access to information has been a major factor hindering the development of rural industries and the improvement of family farm
resilience. Specifically, there are two main factors. First, the rural market is relatively small and local demand is limited, which is
compounded by the fact that some rural areas are located in remote mountainous regions, resulting in higher transportation costs and
limited interaction between farmers and external markets (Onayev, Espey, & Swei, 2022). Second, the information network

3
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

infrastructure in rural areas is underdeveloped, and the high cost of searching for information and conducting online transactions
limits the use of the internet by farmers (Nicholas, 2003). These technical barriers result in underinvestment and lower levels of
resilience for family farms.
However, the rapidly developing e-commerce industry provides an effective solution to bridge the gap between the production and
sales of agricultural products, thereby alleviating underinvestment in family farms. Rural e-commerce expands the potential consumer
market for agricultural products and breaks the spatial and temporal constraints of traditional agricultural trading places (Autio,
Mudambi, & Yoo, 2021). This enables market participants from both urban and rural areas to conduct cross-regional transactions in a
peer-to-peer manner within virtual spaces, increasing transaction transparency and enabling precise matching of farmers and markets
(W. Huang, Hu, Tsai, Liu, & Huang, 2022). Through the utilization of digital service platforms, not only has there been a substantial
reduction in transaction costs and market prices, leading to an increase in transaction volume, but it has also resulted in heightened
operational revenue. Simultaneously, this provision of additional funds facilitates the reproduction of family farms. In terms of pro­
duction costs, e-commerce has the advantage of reducing information search costs and product transaction costs (Goldfarb & Tucker,
2019). Farmers can use e-commerce to purchase agricultural production materials in bulk, share agricultural machinery, and adopt
standardized production models to reduce agricultural production costs (Ackermann, Adams, Gindele, & Doluschitz, 2018). This can
improve underinvestment, increase land productivity, and enhance the resilience of family farms. Thus, we hypothesize that:
H3. The e-commerce policy can address insufficient investment in family farms, thereby enhancing economic resilience.
On the other hand, for overinvestment, family farms can use e-commerce to achieve efficient organization and management, thus
curbing overinvestment. After the implementation of e-commerce policies, sales channels for agricultural products are opened up and
the scale of operation continues to expand (Guo, Jin, Zhao, Wang, & Zhao, 2022). The expansion of the scale of family farms inevitably
leads to increased investment demands, primarily including purchases of new technologies, varieties, and equipment for agricultural
production. Efficient organization and management of family farms is essential for achieving optimal allocation of investment
(Anagnostopoulou & Avgoustaki, 2023). With efficient organization and management, family farms can optimize the allocation of
labor, land, capital, technology, and other production factors to achieve the best benefits while considering the improvement of land
output and labor productivity rates (Schmitt, 1992). Additionally, family farms exhibit higher levels of agricultural specialization,
ecological consciousness, and cooperation awareness than traditional small-scale farmers. Therefore, compared with traditional
small-scale farmers, family farms demonstrate higher organizational and management efficiency, curbing irrational investment
behavior and avoiding the problem of overinvestment.
However, even though new professional farmers are the main force behind family farm management, they have not fundamentally
changed their nature as small-scale family farmers. With the development of rural e-commerce, when the scale of family farm op­
erations reaches a certain limit, some small-scale farmers who have become the main body of farm management will find it difficult to
effectively manage their funds due to a lack of financial and production management experience, thus exacerbating overinvestment in
family farms (Woolpert, Morse, & Barbano, 2016). Additionally, an increasing number of individuals without experience in operating
and managing farms, as well as those with short-term experience, have become farmers, and some farmers come from entrepreneurial
or industrial backgrounds. The former lacks experience in managing large-scale agricultural production, while the latter neglects the
unique characteristics of large-scale agriculture (Han, 2014). Therefore, if there is a lack of effective organization and management,
the policy of e-commerce going rural and the resulting expansion of the scale of family farm operations will exacerbate over­
investment. Thus, this paper proposes Hypothesis 4.
H4. The e-commerce policy does not have a significant inhibitory effect on overinvestment in family farms.

3. Variable selection and model design

3.1. Model design

External factors such as economic development and natural geographic conditions in different regions may influence the selection
of policy destinations. The absence of certain natural geographic variables or the misidentification of causal relationships can create
endogeneity issues. To determine the causal impact of the e-commerce policy, this study employs it as a quasi-natural experiment. To
overcome endogeneity issues and accurately estimate the net effect of e-commerce on family farm resilience, the study uses a staggered
DID model. Thus, the model is formulated as follows.

Yit = β0+β1ETI*PCRt+Σβxcontrol + ri + yt + ui+εit (1)

In the above formula, Yit is a proxy variable that measures the economic resilience of family farms, while β0 is the constant term.
ETI*PCRt is the independent variable in this study, and β1 represents the net impact of the e-commerce pilot policy on the resilience of
family farms. The control variables are labeled as "control" and have coefficients represented by βx. And ri represents industry-fixed
effects, yt represents time-fixed effects, ui represents province-fixed effects, and εit represents random disturbance terms.

3.2. Variable selection

3.2.1. Dependent variable

Currently, the prevailing approach to measuring resilience involves using financial metrics such as revenue and return on assets as

4
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

baseline indicators (Markman & Venzin, 2014; Rüdiger, Kevin, & Stulz, 2020). By examining changes in these metrics before and after
external shocks, we can indirectly assess resilience. Business revenue is closely related to key components of farm resilience such as
profitability and survival, especially during crises. Business revenue can directly impact a family farm’s cash flow and determine
whether the farm has adequate resources to cope with external shocks (Barasa, Mbau, & Gilson, 2018). Thus, changes in revenue before
and after the e-commerce policy can indicate the level of family farm resilience.
The methodology for evaluating family farm resilience is illustrated in Fig. 1. Point E represents the initial level of family farm
revenue before the implementation of the e-commerce policy. Changes in farm revenue caused by agricultural production risks move
the point E to L1 or other positions. If the post-change revenue position is above the potential level L0 or slightly lower than L0, it
indicates that the negative impact of agricultural production risks on revenue is minor, and the family farm’s resilience is strong. On
the other hand, if revenue significantly declines, it suggests that the negative impact of agricultural risks on revenue is substantial, and
the farm’s resilience is weak. The implementation of the e-commerce policy results in additional changes, moving the point to P1 or
other positions. This change also reflects the resilience of the family farm. If the post-change revenue position is above the potential
level P0, it indicates that the family farm can quickly take measures to resist risks in agricultural production and operation activities,
seize new opportunities and create new revenue growth points. In other words, the resilience of the family farm is strong. Conversely, if
revenue cannot be restored to the potential level P0, it indicates that the farm did not benefit from the e-commerce policy.
The resilience level of a family farm can be measured by comparing the area of polygon EABP1L with the area of polygon EABP0.
The EL0P0 represents the potential revenue change path of the farm without any impact from agricultural production risks, while EL1P1
represents the actual revenue change path of the farm under the impact of agricultural production risks. By comparing the areas of
these two polygons, the resilience level of the family farm can be determined. Therefore, this paper constructs the following model:

Resi = ΣtSaleit/ΣtSaleEstit (2)

In this formula, i represents a family farm, t represents the length of the event window, Saleit represents the actual operating in­
come, and SaleEstit represents the potential operating income. The actual value can be directly observed from the operating income
within the event window. To enhance the stability of the measurement results, this study uses the average value of operating income
during the window period before policy implementation to estimate the potential value.
This article recognizes the potential measurement bias that external shock heterogeneity may cause and therefore proposes the
following improvements to the existing mainstream measurement concepts. Firstly, the heterogeneity of agricultural production risks
mainly arises from various factors such as natural geographical conditions, economic foundations, development levels, and degrees of
openness across regions. To address this, the samples are divided into four regions: East, Central, West, and Northeast. Secondly, the
article assumes that family farms in the same region are equally affected by agricultural production risks. Lastly, Res is central pro­
cessing within the group to obtain the farm economic resilience (Res_adj) that has been adjusted for external shock heterogeneity.

Res_adj=(-1)n(Res-ResM)/ResM (3)

ResM denotes the group-level average of the samples, while n is a dummy variable that takes a value of 0 when ResM is positive, and
1 otherwise. This ensures that Res_adj values are numerically consistent. To minimize the effect of outliers, Res was trimmed at the
bilateral 1% level before calculating Res_adj. A higher value of Res_adj implies greater economic resilience of the family farm.

3.2.2. Independent variables

The key independent variable is the interaction term ETI*PCRt, which indicates whether the rural e-commerce policy has been
implemented or not. Specifically, ETI is a policy dummy variable that takes a value of 1 if the sampled farm is located in a county where
e-commerce has been piloted and 0 otherwise. Similarly, PCRt is a binary variable that indicates whether the e-commerce policy has
been implemented or not, taking the value of 1 after implementation and 0 otherwise.

Fig. 1. Effects of risk shocks on operating revenue.

5
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

3.2.3. Mechanism variables

The implementation of e-commerce policies in rural areas has helped family farms to alleviate financing constraints and make
diversified production investments, leading to an increase in agricultural land efficiency (Ghebru & Holden, 2015). The availability of
credit can also enhance the agricultural investment capacity of family farms and promote the use of agricultural inputs (Adetiloye,
2012), thus improving the resilience of family farms. Therefore, this paper investigates the transmission mechanism of the impact of
e-commerce policies on the resilience of family farms by selecting financing constraints and underinvestments as mechanism variables.

(a) Alleviating Financing Constraints. Financing constraints occur when farms cannot fully utilize their potential production ca­
pacity due to limitations in securing funds. E-commerce policies have the potential to mitigate financing constraints for family
farms by introducing financial innovation, increasing credit support for agriculture from financial institutions, and reducing
financing restrictions on family farms. This would streamline the process for family farms to access funds, thereby improving
their flexibility in making investments. The methods for measuring sample financing constraints are diverse, but most ap­
proaches involve financial indicators that are challenging to address for endogeneity, potentially introducing errors in the
drawn conclusions. This paper constructs a financing constraint index using only two variables—farm size and farm age. These
variables exhibit minimal variation over time and demonstrate robust exogeneity (Hadlock & Pierce, 2010).
(b) Suppressing Inefficient Investments. Investment levels play a pivotal role in the economic resilience of farms. E-commerce
policies influence the investment decisions of family farms by improving market information transparency, expanding sales
channels, and offering insights into trends in agricultural product prices. Inefficient investments involve disparities between
actual and optimal investment levels, encompassing both underinvestment and overinvestment. Underinvestment may indicate
that family farms face constraints in production, technology, or equipment, leading to reduced productivity and affecting the
farms’ adaptability and ongoing operational capabilities. Conversely, overinvestment may lead to resource waste and an
increased burden on farms, thereby impacting their economic resilience. The investment efficiency of family farms is measured
by non-efficiency investment indicators. This article uses the method for determining non-efficiency investment in enterprises
(Biddle, Hilary, & Verdi, 2009; Richardson, 2006) as the basis for analyzing the investment in family farms. The model de­
termines the investment efficiency of family farms by measuring the deviation from the optimal investment rate to the actual
investment rate.

3.2.4. Controls
In line with prior research, we have chosen family farm characteristic variables and county-level macroeconomic variables as
control variables. These encompass the logarithm of the annual total assets and liabilities of the family farm. Considering the identified
nonlinear relationship between enterprise size and development, we have also incorporated the square of family farm assets into the
model (Audretsch, Santarelli, & Vivarelli, 1999; Wagner, 1994). Furthermore, We also consider the difference between the sample year
and the year the farm was established to represent the farm’s age. Additionally, we included the asset turnover rate, which is the ratio
of farm sales revenue to total assets, the capital intensity, which is the ratio of average total assets to sales revenue, and the
debt-to-asset ratio, which is the ratio of total liabilities to total assets. For county-level macroeconomic variables, we use the logarithm
of per capita GDP to measure the economic development status of the region.
This study employs a sample of 110,574 family farms in China spanning the years 2013–2021. Data for the key explanatory
variables are derived from the ’List of National Comprehensive Demonstration Counties for Rural E-commerce from 2014 to 2021.’
This list mandates the phased implementation of pilot projects across 1613 county-level administrative units nationwide, rendering it a
reliable quasi-natural experiment for this study. Essential information and financial data pertaining to family farms are extracted from
the China Academy for Rural Development-Qiyan China Agri-research Database (CCAD), encompassing details from 28 provinces and
2286 counties, ensuring a broad geographic spread. The sample’s representativeness is enhanced by its inclusion of registered family
farms from a national registry, representing a diverse array of China’s agricultural landscape. This broad coverage allows for a precise
depiction of the varied conditions and challenges that family farms encounter across different regions. Per capita GDP data are drawn

Table 1
Descriptive statistics.
Variable Obs Mean Std. Dev. Min P50 Max

Economic Resilience 110574 0.121 0.705 − 1 − 0.0211 1.937

ETI*PCR 110574 0.425 0.494 0 0 1
Age 110574 3.645 2.038 1 3 9
Debt-to-asset ratio 110574 1.026 3.246 0 0 20.38
Capital intensity 110574 0.819 0.301 0 0.955 0.998
Asset turnover ratio 110574 0.538 0.574 0 0.396 2.970
(log) Assets 110574 3.443 1.497 0 3.714 6.686
Square of assets 110574 14.10 9.461 0 13.79 44.70
(log) Liabilities 110574 0.478 1.137 0 0 4.710
Per capita GDP 110574 4.299 0.992 0 4.476 5.070
Financing constraints 110574 − 2.077 0.728 − 3.155 − 2.273 − 0.080
Inefficient investments 54245 0.012 0.019 0.001 0.006 0.120
Overinvestment 18604 0.017 0.028 0.001 0.007 0.161
Underinvestment 35641 0.009 0.012 0.001 0.006 0.080

6
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

from the China County Statistical Yearbook, and any missing values in the sample are addressed through linear interpolation.
Detailed descriptive statistics for specific variables can be found in Table 1. The analysis of 110,574 family farms from 2013 to 2021
reveals significant variability in economic resilience, with a mean of 0.121 and a range from − 1 to 1.937, highlighting diverse
resilience levels across farms. Approximately 42.5% of the farms have been exposed to an e-commerce pilot policy, indicating sub­
stantial implementation. The farms, predominantly young with an average age of 3.645 years, display considerable financial disparity
as evidenced by a debt-to-asset ratio ranging widely from 0 to 20.38. Capital intensity across these farms is relatively consistent, yet the
asset turnover ratio varies, suggesting differences in operational efficiency. Economic conditions also vary widely, as reflected by
regional per capita GDPs and the presence of significant financial constraints and varied levels of investment efficiency, ranging from
underinvestment to overinvestment. These statistics paint a comprehensive picture of the operational and financial landscape of family
farms in China, highlighting both challenges and areas for targeted policy intervention.

4. Results

4.1. Benchmark model testing

Hypothesis 1 posits that implementing e-commerce policies in rural areas will bolster the resilience of family farms. Table 2 is
employed to assess this hypothesis, analyzing the net impact of rural e-commerce policies on family farm resilience. The results in
column (1) present the outcomes of the regression without the inclusion of any control variables. Column (2) includes the results with
added control variables, while columns (3)–(5) successively introduce unobservable heterogeneity at the time, provincial, and industry
levels into the regression. Examination of the coefficient for the e-commerce policy in column (5) reveals a substantial positive impact
of the rural e-commerce pilot policy on family farm resilience. The coefficient value for the e-commerce pilot policy in column (5) is
0.085, and it achieves statistical significance at the 1% confidence level. This suggests that the implementation of the rural e-commerce
pilot policy can augment the economic resilience of family farms by approximately 8.5%. Following policy implementation, resilient
farms can adeptly select a development path aligned with the national strategy for rural digital development. The empowerment of
farms through e-commerce provides owners with increased capacity, power, resources, and vitality. This enhanced ability to adapt to
disasters allows them to resist and transform, achieving and maintaining a suitable structure and function. This underscores the
flexibility inherent in resilient farm entrepreneurship.

4.2. Robustness checks

In this section, our goal is to ensure the robustness of our parameter estimation model by constructing a robust regression model.
We employed various methods, including parallel trend tests, placebo tests, PSM-DID models, altering the sample size of family farm
economic resilience, and modifying the measurement methods of family farm economic resilience.

Table 2
Results of regression analyses.
Economic Resilience

(1) (2) (3) (4) (5)

ETI*PCR 0.019*** 0.130*** 0.092*** 0.084*** 0.085***

(4.16) (36.11) (23.43) (20.91) (20.96)
Age 0.192*** 0.174*** 0.169*** 0.169***
(207.16) (168.11) (162.49) (161.96)
Debt-to-asset ratio 0.002*** 0.003*** 0.003*** 0.003***
(3.17) (4.92) (4.74) (4.80)
Capital intensity − 0.029* − 0.045*** − 0.063*** − 0.063***
(-1.66) (-2.60) (-3.61) (-3.61)
Asset turnover ratio 0.102*** 0.104*** 0.118*** 0.117***
(32.97) (33.77) (38.15) (37.77)
(log) Assets 0.051*** 0.052*** 0.053*** 0.053***
(6.42) (6.60) (6.71) (6.70)
Square of assets − 0.003*** − 0.003*** − 0.002** − 0.002**
(-3.36) (-2.66) (-2.10) (-1.99)
(log) Liabilities − 0.004 − 0.006* − 0.008** − 0.008**
(-1.39) (-1.83) (-2.54) (-2.52)
Per capita GDP − 0.002 − 0.002 − 0.011*** − 0.011***
(-1.33) (-1.18) (-6.48) (-6.26)
Year FE Yes No Yes Yes Yes
City FE Yes No No Yes Yes
Industry FE Yes No No No Yes
Constant − 0.633*** − 0.784*** − 0.894*** − 0.706*** − 0.710***
(-5.71) (-72.62) (-63.06) (-7.25) (-7.29)
Observations 110574 110574 110574 110574 110574
R-squared 0.181 0.328 0.342 0.356 0.357

Note: t statistics based on robust standard errors that are shown in parentheses.*, **, and *** denote p < 0.10, p < 0.05, and p < 0.01, respectively.

7
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

Firstly, we utilized parallel trend tests. The effectiveness assessment of the DID model depends on its passing of the parallel trend
test. If there is no significant difference in regression coefficients for each year before the implementation of the rural e-commerce
policy, and a significant difference emerges in regression coefficients after policy implementation, we can conclude that the DID model
estimation is effective (Jacobson, Lalonde, & Sullivan, 1993). The results of the parallel trend test are presented in Fig. 2. Before the
implementation of the rural e-commerce policy, the overall test is not significant. However, after policy implementation, the confi­
dence interval of the impact coefficient β1 is consistently above 0, indicating a significant difference in the impact coefficient β1 for
each year and a sustained impact on the economic resilience of family farms. This fulfills the parallel trend assumption.
Secondly, a placebo test was conducted on the randomly generated experimental group. Other policy factors or random variables
may also influence the resilience of family farms. To examine whether estimation results are biased due to omitted variables, this paper
executed a placebo test based on the method for handling randomness tests in policy experiments (Cantoni, Chen, Yang, Yuchtman, &
Zhang, 2017). Following the yearly progression of rural e-commerce pilot policies, 1000 hypothetical treatment groups were randomly
generated for multi-period double-difference regression. As illustrated in Fig. 3, the coefficients of the randomly generated regression
results mostly fall within ±0.01, suggesting that, under the impact of randomly generated policies, there is no significant positive effect
on the resilience of family farms.
Thirdly, PSM-DID was employed. Although the rural e-commerce policy is an exogenous decision, there might be inherent
endogeneity between the policy and the economic resilience of family farms. In other words, areas with more developed family farms
are more likely to be chosen as pilot counties. To address potential endogeneity issues arising from selection bias in policy pilot areas,
this paper compared maximum likelihood values of Logit models and selected farm age, asset-liability ratio, asset turnover rate, as well
as assets and liabilities as covariates (Imbens, 2015). Further validation was carried out using 1:3 matching, 1:5 matching, and radius
matching. Columns (1)–(3) in Table 3 present the results of the matched PSM-DID regression, and the estimation results remain
consistent with the baseline regression.
Fourthly, the sample size of family farm economic resilience was altered. To prevent systematic bias in estimating the economic
resilience of family farms, economic resilience values were sorted from high to low, divided into three groups, and the middle group
was omitted, retaining only the highest and lowest groups. The impact of the e-commerce policy on the economic resilience of family
farms was retested using these two groups. The results are depicted in column (4) of Table 3, and at the 1% significance level, the rural
e-commerce policy exhibited a significant enhancing effect on the economic resilience of family farms.
Finally, the measurement method of family farm economic resilience was changed. To further validate the robustness of the
conclusions, this paper adjusted the financial indicators in the original measurement method of family farm economic resilience to the
asset yield ratio and reevaluated the economic resilience of family farms. Column (5) of Table 3 reports the regression results after
replacing the dependent variable in the baseline regression model. The coefficient remains significantly positive, indicating that the
core conclusion of this paper is unaffected by the choice of the underlying indicators.

4.3. Heterogeneous analysis

Good performance in financial reforms typically require a solid institutional framework (Arestis, Demetriades, Fattouh, & Mour­
atidis, 2002). Regional differences in institutional quality can significantly impact the effectiveness of e-commerce policies. The quality
of institutions is measured using the "Marketization Index," as specified in the "Marketization Index of China’s Provinces: NERI Report
2018" (Gupta, He, Ma, & Yur-Austin, 2022) The quality of institutions refers to the effectiveness and excellence of a set of rules,
regulations, policies, or mechanisms and is typically used to evaluate the reliability, fairness, transparency, and effectiveness of in­
stitutions. The results of column 1–2 of Table 4 show that the policy effects are more positive in regions with good institutional quality.
This could be because these regions have a stronger economic foundation, a higher degree of marketization, and a better legal
environment, among other factors, which provide better protection for the legitimate rights and interests of producers. Additionally, a

Fig. 2. Parallel trends test.

8
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

Fig. 3. Placebo test.

Table 3
Results of robustness test.
(1)1:3 Matching (2)1:5 Matching (3)Radius matching (4)Changing the sample size (5)Changing the measurement method

ETI*PCR 0.084*** 0.084*** 0.085*** 0.101*** 0.093**

(17.49) (19.02) (20.97) (18.50) (2.04)
Control variables Yes Yes Yes Yes Yes
Year FE Yes Yes Yes Yes Yes
City FE Yes Yes Yes Yes Yes
Industry FE Yes Yes Yes Yes Yes
Observations 71138 85348 110444 73496 99288
R-squared 0.348 0.349 0.357 0.471 0.001

lower level of government intervention in farms can create a more favorable environment for family farms to enhance their resilience
through e-commerce.
This article classifies family farms into two groups based on their asset size: large and small, using this as a surrogate variable for
farm size with the median as the standard. The results in columns 3–4 of Table 4 reveal that the rural e-commerce policy has a more
pronounced effect on enhancing the economic resilience of large-scale farms. Large-scale family farms are better positioned to meet
market demands, offer more agricultural products, and achieve greater growth in market share through the scale effect of e-commerce
platforms. Additionally, they can leverage more collateral to secure additional external financial support, enabling increased in­
vestment in e-commerce platforms. This, in turn, enhances marketing strategies and improves supply chain management, leading to
increased exposure and visibility. Consequently, this enhances the competitiveness of the farm’s agricultural products in terms of both
quantity and quality compared to small-scale competitors, establishing a virtuous cycle where the impact on improving farm economic
resilience is more evident. In contrast, small-scale family farms, constrained by limitations in land, funds, and human resources,
encounter greater challenges when participating in e-commerce platforms. Their benefits from e-commerce policies primarily stem
from expanding market opportunities, reducing transaction costs, and receiving technical support.
This article also classifies family farms into two categories based on their capital intensity: capital-intensive and non-capital-
intensive. The categorization is done using the median as a standard, and separate regressions are conducted for these two types of
family farms. The results in columns 5–6 of Table 4 reveal that the rural e-commerce policy has a more pronounced effect on enhancing
resilience in capital-intensive family farms. Capital-intensive family farms may achieve larger-scale and modernized production and
sales through the rural e-commerce policy, leveraging their relatively high capital investment. They can optimize resource allocation

Table 4
Results of heterogeneity analysis.
(1)High marketization (2)Low marketization (3)Large- (4)Small- (5)High capital intensity (6)Low capital intensity
scale scale

ETI*PCR 0.059*** 0.087*** 0.063*** 0.108*** 0.209 0.160***

(6.39) (10.59) (11.28) (18.57) (0.74) (9.17)
Control variables Yes Yes Yes Yes Yes Yes
Year FE Yes Yes Yes Yes Yes Yes
City FE Yes Yes Yes Yes Yes Yes
Industry FE Yes Yes Yes Yes Yes Yes
Observations 81162 29412 60460 50114 57186 53388
R-squared 0.372 0.331 0.363 0.350 0.365 0.355

9
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

and enhance production efficiency more effectively by utilizing e-commerce platforms, thereby demonstrating more significant
economic resilience. In contrast, non-capital-intensive family farms may benefit in terms of market access and information acquisition,
but the improvement in resilience is relatively limited. This differential effect reflects the adaptability and degree of benefits for
different types of family farms in the process of digital transformation.

4.4. Mechanism testing

Hypothesis 2 asserts that e-commerce policies enhance the economic resilience of farms by alleviating financing constraints. Ev­
idence from Table 5, with a significant coefficient (ETI*PCR = − 0.008), shows that e-commerce effectively reduces financing con­
straints for family farms within pilot counties by addressing information asymmetry between financial institutions and farms. E-
commerce facilitates a more transparent exchange of information, thereby improving financial institutions’ ability to assess the
creditworthiness of farms. This is crucial, as traditional financial systems often fail to accurately represent the economic realities of
small-scale farms, resulting in higher perceived risks and limited credit availability. Moreover, e-commerce initiatives enhance
logistical efficiencies and establish robust warehousing systems, significantly reducing sales and distribution costs for family farms.
These reductions in operational costs improve profit margins and financial stability, making farms more attractive to lenders. Addi­
tionally, the increased visibility and market reach provided by e-commerce platforms boost sales volumes and revenues, enabling
farms to sustain healthier cash flows. The resulting increase in revenue and decrease in costs enable family farms to offer better
collateral when seeking external financing. Enhanced financial records and transaction transparency through e-commerce help reduce
perceived risks by lenders, further easing credit constraints. This increase in available capital supports investments in productivity-
enhancing technologies and practices, improving agricultural land efficiency and strengthening farm resilience. This detailed anal­
ysis of how e-commerce mitigates financing constraints underscores the policy’s potential to transform rural financial markets by
enhancing credit access for underserved sectors, thereby reinforcing the resilience and sustainability of family farms.
Hypotheses 3 and 4 predict that e-commerce policies enhance the resilience of family farms by mitigating their investment shortage
without significantly inhibiting overinvestment. Due to the heightened intensity of overinvestment, e-commerce does not notably curb
overall inefficient investment, as indicated in columns 2 and 3 of Table 5. Particularly, column 4 of Table 5 reports the impact of e-
commerce on the underinvestment of family farms. The coefficient of ETI*PCR for underinvestment is − 0.017, signifying significance
at the 1% level. This suggests that the e-commerce pilot policies have ameliorated the investment shortage of family farms compared to
those not implementing them. E-commerce has spurred the expansion of local and external market demand, consequently broadening
the sales channels for agricultural products. The scale effect resulting from increased sales volume has augmented farm income,
providing farms with more capital for investment in agricultural production. E-commerce also diminishes the costs associated with
information search and goods transactions. Farm owners can buy agricultural production materials in bulk and share agricultural
machinery and other large-scale production models to curtail agricultural production costs and alleviate investment shortages.
However, if family farms lack effective organizational governance, the mechanism through which e-commerce impacts farms may
falter and even exacerbate the overinvestment issue. Although previous research has established that rural e-commerce policies
stimulate economic growth through enhanced investments in agricultural infrastructure and technology (Zeng, Guo, Yao, & Huang,
2019), this study further explores how these policies specifically address investment deficiencies on family farms.

5. Conclusions and study implications

This article explores the impact of e-commerce development on the economic resilience of 110,574 family farm samples in China
from 2013 to 2021. The study finds that the development of e-commerce has a significant positive effect on economic resilience. The
research also investigates two mechanisms by which e-commerce affects the resilience of family farms. Firstly, it improves information
asymmetry between financial institutions and farms, reducing financing constraints. Secondly, it expands the potential consumer
market for agricultural products and enables bulk purchases of agricultural production materials and machinery at a lower cost,
thereby curbing insufficient investment and enhancing their resilience. However, the effect on the resilience of farms with over­
investment is insignificant. Furthermore, the results of heterogeneity analysis show that e-commerce has a stronger impact on resil­
ience in regions with good institutional quality and in capital-intensive and large-scale family farms.

Table 5
Results of mechanism analysis.
(1)Financing constraints (2)Inefficient investments (3)Overinvestment (4)Underinvestment

ETI*PCR − 0.008*** − 0.003 0.001 − 0.017***

(-12.62) (-1.22) (0.99) (-14.98)
Control variables Yes Yes Yes Yes
Year FE Yes Yes Yes Yes
City FE Yes Yes Yes Yes
Industry FE Yes Yes Yes Yes
Observations 110574 54245 18604 35641
R-squared 1.000 0.401 0.732 0.086

10
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

5.1. Theoretial implication

This study makes a meaningful contribution to the intersection of e-commerce and agriculture. By establishing a positive corre­
lation between e-commerce development and farm resilience, the research enriches the theoretical framework exploring factors that
influence the adaptability of agricultural systems and delves into the broader impact of digital technology on the agricultural sector.
The study’s findings offer a theoretical foundation for policy design, advocating the use of e-commerce to address specific challenges
faced by family farms and fostering the development of sustainable and resilient agricultural communities.
The identification of two mechanisms through which e-commerce impacts farm resilience—improving financing constraints and
addressing underinvestment—provides a profound theoretical understanding of the influence of digital technology on agriculture. A
comprehension of e-commerce’s role in alleviating financing restrictions and optimizing input costs enhances theoretical insights into
how technology reshapes traditional agricultural practices. The research also acknowledges differences in the impact of e-commerce
between regions and farm types, recognizing that in certain contexts (such as regions with good institutional quality, large-scale family
farms, and capital-intensive family farms), the effects are more pronounced. The study incorporates the complex interactions between
technology adoption and environmental factors in agriculture.

5.2. Practical implication

This study underscores the crucial role of e-commerce in bolstering the economic resilience of family farms, illustrating how
strategic e-commerce practices can be tailored to various farm sizes and types to optimize their advantages. E-commerce is recognized
as a vital tool for enhancing farmers’ financial capacity by addressing significant challenges such as information asymmetry and
financing constraints, thereby becoming indispensable for sustainable agricultural development. Policymakers are encouraged to
create differentiated support policies that cater specifically to the distinct needs of both small-scale and large-scale farms. For smaller
farms, efforts might center on enhancing digital literacy and providing cost-effective access to e-commerce platforms. In contrast,
larger farms could benefit from the adoption of advanced e-commerce technologies and logistical supports that suit their broader
operational scope and market reach.
Operational guidelines and specialized training should be offered to farm owners to help them effectively utilize e-commerce for
expanding market access, managing supply chains, and leveraging online financial services to improve cash flow and investment
management. This guidance must be meticulously tailored to align with the scale and specific characteristics of each farm to ensure its
effectiveness. Moreover, the study advocates for a prudent approach to managing the risks of overinvestment, which can be exacer­
bated by e-commerce due to the enhanced access to markets and financing. Policymakers should formulate strategies that empower
farmers to critically evaluate investment opportunities, thus avoiding the pitfalls of overexpansion. The necessity of crafting region and
farm-specific strategies is highlighted, urging the development of interventions that are sensitive to the varied conditions of different
agricultural contexts. This approach ensures that digital solutions are not only universally accessible but also finely adjusted to
reinforce the resilience of family farms.

6. Limitations and directions for future research

This study centers on the development of rural e-commerce, a promising strategy endorsed by various governments and organi­
zations in developing countries to foster rural progress. It provides robust empirical evidence on the economic impacts of e-commerce
adoption by Chinese family farms, utilizing a large-sample, data-driven empirical model. However, there are several aspects that
warrant further investigation in future research. Firstly, this article relies solely on data from family farms registered with adminis­
trative departments. Notably, family farms in Shanghai and Beijing are exempt from such registration requirements, and a significant
number of family farms in China remain unregistered. Consequently, expanding the sample size would enhance the effectiveness and
generalizability of the results. Secondly, there is a lack of consensus among scholars regarding the measurement of family farm
resilience. While this study strives to use farm profitability as a rigorous measure, it anticipates that scholars will develop more sci­
entific and universally applicable measurement methods in the future. Thirdly, the study exclusively concentrates on family farms in
China. The findings may not be entirely applicable to other countries due to differing economic, cultural, and institutional
backgrounds.
Future research could undertake comparative analyses among countries with varying levels of e-commerce development and
diverse agricultural structures. Such analyses would aid in identifying universal patterns and factors influencing the economic resil­
ience of family farms. Moreover, future studies should include a forecast of future rural e-commerce development trends and potential
challenges, alongside a more thorough discussion on the long-term impact of e-commerce development on agricultural production
methods and the rural economic structure. This expanded focus will provide deeper insights into the sustainability and transformative
potential of e-commerce in rural economies.

Funding

Innovation and Practice of Education and Teaching Reform for Team Teachers in the Field of E-commerce in Vocational Education
in the New Era Project Number: ZH2021010101.

11
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

Author contributions

Conceptual conceptualisation, and; Methodology; Data compilation, and; Formal analysis; Writing-original draft preparation, and;
Writing-review and editing, and; Guidance; All authors have read and agreed to the published version of the manuscript.

Declaration of competing interest

The authors declare that they have no known competing financial interests or personal relationships that might influence the work
reported in this paper.

Data availability

Data will be made available on request.

References

Ackermann, S., Adams, I., Gindele, N., & Doluschitz, R. (2018). The role of e-commerce in the purchase of agricultural input materials. Die Landtechnik, 73(1), 10–19.
Adetiloye, K. A. (2012). Agricultural financing in Nigeria: An assessment of the agricultural credit guarantee scheme fund (ACGSF) for food security in Nigeria (1978-
2006). Journal of Economics, 3(1), 39–48.
Anagnostopoulou, S. C., & Avgoustaki, A. (2023). The impact of human resource practices on corporate investment efficiency. International Review of Financial
Analysis, 87. https://doi.org/10.1016/j.irfa.2023.102609
Appelbaum, S. H., Hébert, D., & Leroux, S. (1999). Empowerment: Power, culture and leadership – a strategy or fad for the millennium? Journal of Workplace Learning,
11(7), 233–254.
Arestis, P., Demetriades, P., Fattouh, B., & Mouratidis, K. (2002). The impact of financial liberalization policies on financial development: Evidence from developing
economies. International Journal of Finance & Economics, 7(2), 109–121. https://doi.org/10.1002/ijfe.181
Audretsch, D. B., Santarelli, E., & Vivarelli, M. (1999). Start-up size and industrial dynamics: Some evidence from Italian manufacturing. International Journal of
Industrial Organization, 17(7), 965–983. https://doi.org/10.1016/s0167-7187(98)00002-2
Autio, E., Mudambi, R., & Yoo, Y. (2021). Digitalization and globalization in a turbulent world: Centrifugal and centripetal forces. Global Strategy Journal, 11(1), 3–16.
https://doi.org/10.1002/gsj.1396
Barasa, E. W., Mbau, R., & Gilson, L. (2018). What is resilience and how can it Be nurtured? A systematic review of empirical literature on organizational resilience.
International Journal of Health Policy and Management, 7(6).
Barner, R. (1994). Enablement - the key to empowerment. Training & Development, 48(6), 33–36. Retrieved from <Go to ISI>://WOS:A1994PC08500009.
Biddle, G. C., Hilary, G., & Verdi, R. S. (2009). How does financial reporting quality relate to investment efficiency? Journal of Accounting and Economics, 48(2–3),
112–131. https://doi.org/10.1016/j.jacceco.2009.09.001
Bojnec, S., & Ferto, I. (2016). Financial constraints and farm investments in Slovenia. New Medicine, 15(4), 2–9. Retrieved from <Go to ISI>://WOS:
000402229200001.
Cantoni, D., Chen, Y. Y., Yang, D. Y., Yuchtman, N., & Zhang, Y. J. (2017). Curriculum and ideology. Journal of Political Economy, 125(2), 338–392. https://doi.org/
10.1086/690951
Castella, J. C., Manh, P. H., Kam, S. P., Villano, L., & Tronche, N. R. (2005). Analysis of village accessibility and its impact on land use dynamics in a mountainous
province of northern Vietnam. Applied Geography, 25(4), 308–326. https://doi.org/10.1016/j.apgeog.2005.07.003
Chen, D., Guo, H., Zhang, Q., & Jin, S. (2022). E-commerce adoption and technical efficiency of wheat production in China. Sustainability, 14(3), 1197.
Cisse, J. D., & Barrett, C. B. (2018). Estimating development resilience: A conditional moments-based approach. Journal of Development Economics, 135, 272–284.
https://doi.org/10.1016/j.jdeveco.2018.04.002
Darnhofer, I. (2014). Resilience and why it matters for farm management. European Review of Agricultural Economics, 41(3), 461–484. https://doi.org/10.1093/erae/
jbu012
Darnhofer, I., Lamine, C., Strauss, A., & Navarrete, M. (2016). The resilience of family farms: Towards a relational approach. Journal of Rural Studies, 44, 111–122.
https://doi.org/10.1016/j.jrurstud.2016.01.013
Das, B. (2014). ICTs adoption for accessing agricultural information: Evidence from Indian agriculture §. Agricultural Economics Research Review, 27(2), 199–208.
de Mey, Y., Wauters, E., Schmid, D., Lips, M., Vancauteren, M., & Van Passel, S. (2016). Farm household risk balancing: Empirical evidence from Switzerland.
European Review of Agricultural Economics, 43(4). https://doi.org/10.1093/erae/jbv030
Duden, C., & Offermann, F. (2020). Income risk of German farms and its drivers. German Journal of Agricultural Economics, 69(2), 85–107. Retrieved from <Go to
ISI>://WOS:000611062900001.
Fan, Z. G., Wang, Y. S., & Ying, Z. Z. (2023). Empowerment of cross-border E-commerce platforms for small and medium-sized enterprises: Evidence from China.
Journal of Business-To-Business Marketing, 30(1), 33–44. https://doi.org/10.1080/1051712x.2023.2175633
Francis, E., Blumenstock, J., & Robinson, J. (2017). Digital credit: A snapshot of the current landscape andOpen research questions.
Ghebru, H., & Holden, S. T. (2015). Technical efficiency and productivity differential effects of land right certification: A quasi-experimental evidence. Quarterly
Journal Of International Agriculture, 54(1), 1–31.
Girdziute, L., Slavickiene, A., & Vaitkevicius, S. (2014). Integrated risk assessment at Lithuanian farms. Transformations in Business and Economics, 13(1), 143–154.
Retrieved from <Go to ISI>://WOS:000333771200009.
Goldfarb, A., & Tucker, C. (2019). Digital economics. Journal of Economic Literature, 57(1), 3–43. https://doi.org/10.1257/jel.20171452
Guo, J. X., Jin, S. Q., Zhao, J. C., Wang, H. B., & Zhao, F. (2022). Has COVID-19 accelerated the E-commerce of agricultural products? Evidence from sales data of E-
stores in China. Food Policy, 112. https://doi.org/10.1016/j.foodpol.2022.102377
Gupta, P., He, D., Ma, Y., & Yur-Austin, J. (2022). Do investors listen? Exploring the effect of investor relationship management on firm-specific stock return variation.
Research in International Business and Finance, 60.
Hadlock, C. J., & Pierce, J. R. (2010). New evidence on measuring financial constraints: Moving beyond the KZ index. Review of Financial Studies, 23(5), 1909–1940.
https://doi.org/10.1093/rfs/hhq009
Han, G. Q. (2014). Mechanization and dynamic management in modern Chinese agriculture. Acta Agriculturae Scandinavica Section B Soil and Plant Science, 63,
100–104. https://doi.org/10.1080/09064710.2013.872289
Huang, W., Hu, P. Q., Tsai, F. S., Liu, Y. K., & Huang, Y. (2022). Smart sales empower small farmers: An integrated matching method between suppliers and consumers
based on the information axiom. Sustainability, 14(24). https://doi.org/10.3390/su142416937
Huang, Y., & Zong, H. M. (2020). Spatiotemporal evolution of land transportation networks and accessibility in inland mountainous areas 1917-2017: A case study of
southwest China. Journal of Mountain Science, 17(9), 2262–2279. https://doi.org/10.1007/s11629-019-5790-3
Imbens, G. W. (2015). Matching methods in practice three examples. Journal of Human Resources, 50(2), 373–419. https://doi.org/10.3368/jhr.50.2.373
Jacobson, L. S., Lalonde, R. J., & Sullivan, D. G. (1993). Earnings losses of displaced workers. The American Economic Review, 83(4), 685–709. Retrieved from <Go to
ISI>://WOS:A1993LZ14100001.

12
Z. Huang et al. International Review of Economics and Finance 95 (2024) 103505

Jensen, R. (2007). The digital provide: Information (technology), market performance, and welfare in the South Indian fisheries sector. Quarterly Journal of Economics,
122(3), 879–924. https://doi.org/10.1162/qjec.122.3.879
Kabbiri, R., Dora, M., Kumar, V., Elepu, G., & Gellynck, X. (2018). Mobile phone adoption in agri-food sector: Are farmers in Sub-Saharan Africa connected?
Technological Forecasting and Social Change, 131, 253–261. https://doi.org/10.1016/j.techfore.2017.12.010
Kanter, R. M., & Takai, Y. (1993). Men and women of the corporation : Numbers-minorities and majorities (Vol. 14, pp. 3–34). U.S.-Japan women’s journal.
Li, X., Guo, H., Jin, S., Ma, W., & Zeng, Y. (2021). Do farmers gain internet dividends from E-commerce adoption? Evidence from China. Food Policy, 101, Article
102024.
Li, W., & He, W. (2024). Revenue-increasing effect of rural e-commerce: A perspective of farmers’ market integration and employment growth. Economic Analysis and
Policy, 81, 482–493.
Liu, T., He, G. W., & Turvey, C. G. (2021). Inclusive finance, farm households entrepreneurship, and inclusive rural transformation in rural poverty-stricken areas in
China. Emerging Markets Finance and Trade, 57(7), 1929–1958. https://doi.org/10.1080/1540496x.2019.1694506
Liu, M., Min, S., Ma, W., & Liu, T. (2021). The adoption and impact of E-commerce in rural China: Application of an endogenous switching regression model. Journal of
Rural Studies, 83(1).
Liu, M., Zhang, Q., Gao, S., & Huang, J. K. (2020). The spatial aggregation of rural e-commerce in China: An empirical investigation into Taobao Villages. Journal of
Rural Studies, 80, 403–417. https://doi.org/10.1016/j.jrurstud.2020.10.016
Markman, G. M., & Venzin, M. (2014). Resilience: Lessons from banks that have braved the economic crisis—and from those that have not. International Business
Review, 23(6), 1096–1107.
Marsh, S. J., & Stock, G. N. (2006). Creating dynamic capability: The role of intertemporal integration, knowledge retention, and interpretation. Journal of Product
Innovation Management, 23(5), 422–436. https://doi.org/10.1111/j.1540-5885.2006.00214.x
Mei, T. H., Sjarif, M. A., Mulia, N., & Jayanti, T. B. (2022). The challenges of starting and operating an e-commerce business in rural areas. In Paper presented at the 3rd
tarumanagara international conference on the applications of social sciences and humanities (TICASH 2021).
Meuwissen, M., Paas, W., Slijper, T., Coopmans, I., Ciechomska, A., Lievens, E., … Kopainsky, B. (2018). Report on resilience framework for EU agriculture: Sustainable
and resilient EU farming systems (SureFarm) project report. work package D1. 1. Retrieved from.
Nicholas, K. (2003). Geo-policy barriers and rural Internet access: The regulatory role in constructing the digital divide. The Information Society, 19(4), 287–295.
https://doi.org/10.1080/01972240309489
Nicole, L., Max, S., & Wortman, . D. (2001). Dominant factors impacting the development of business-to-business (B2B) e-commerce in agriculture. The International
Food and Agribusiness Management Review, 4(2), 205–218.
Onayev, A., Espey, C., & Swei, O. (2022). What explains the rising price of highway infrastructure? Journal of Management in Engineering, 38(4). https://doi.org/
10.1061/(asce)me.1943-5479.0001058
Pahwa, A., & Jaller, M. (2022). A cost-based comparative analysis of different last-mile strategies for e-commerce delivery. Transportation Research Part E: Logistics and
Transportation Review, 164. https://doi.org/10.1016/j.tre.2022.102783
Qin, X. D., Wu, H. T., & Shan, T. C. (2022). Rural infrastructure and poverty in China. PLoS One, 17(6). https://doi.org/10.1371/journal.pone.0266528
Rappaport, J. (1981). IN praise of paradox - a social-policy of empowerment over prevention. American Journal of Community Psychology, 9(1), 1–25. https://doi.org/
10.1007/bf00896357
Rathi, A. (2022). Is agrarian resilience limited to agriculture? Investigating the "farm" and "non-farm" processes of agriculture resilience in the rural. Journal of Rural
Studies, 93, 155–164. https://doi.org/10.1016/j.jrurstud.2019.12.015
Renting, H., Oostindie, H., Laurent, C., Brunori, G., Barjolle, D., Jervell, A. M., … Heinonen, M. (2008). Multifunctionality of agricultural activities, changing rural
identities and new institutional arrangements. International Journal of Agricultural Resources, Governance and Ecology, 7(4–5), 361–385. Retrieved from <Go to
ISI>://BCI:BCI200800613921.
Richardson, S. (2006). Over-investment of free cash flow. Review of Accounting Studies, 11(2–3), 159–189. https://doi.org/10.1007/s11142-006-9012-1
Rüdiger, F., Kevin, R., & Stulz, R. M. (2020). How valuable is financial flexibility when revenue stops? Evidence from the COVID-19 crisis. Review of Financial Studies,
34(11), 5474–5521.
Schmitt, G. (1992). Interrelationships between form of organization and farm size. Berichte über Landwirtschaft, 70(4), 505–528. Retrieved from <Go to ISI>://WOS:
A1992KB24900001.
Schwab, & James, C. (2016). Review of the world in 2050: Four forces shaping civilization’s northern future. Journal of Homeland Security and Emergency Management,
8(1). https://doi.org/10.2202/1547-7355.1844
Seuneke, P., & Bock, B. B. (2015). Exploring the roles of women in the development of multifunctional entrepreneurship on family farms: An entrepreneurial learning
approach. NJAS - Wageningen Journal of Life Sciences, 74–75, 41–50. https://doi.org/10.1016/j.njas.2015.07.001
Spreitzer, G. M. (1995). Psychological empowerment in the workplace - dimensions, measurement, and validation. Academy of Management Journal, 38(5),
1442–1465. https://doi.org/10.2307/256865
Volkov, A., Zickiene, A., Morkunas, M., Balezentis, T., Ribasauskiene, E., & Streimikiene, D. (2021). A multi-criteria approach for assessing the economic resilience of
agriculture: The case of Lithuania. Sustainability, 13(4). https://doi.org/10.3390/su13042370
Wagner, J. (1994). The post-entry performance of new small firms in German manufacturing-industries. The Journal of Industrial Economics, 42(2), 141–154. https://
doi.org/10.2307/2950486
Walker, B., Hollin, C. S., Carpenter, S. R., & Kinzig, A. (2004). Resilience, adaptability and transformability in social-ecological systems. Ecology and Society, 9(2), 9.
Retrieved from <Go to ISI>://WOS:000228062200010.
Wang, X., Sun, J. R., Wu, Y. H., & Ieee. (2021). Research on the innovation of "cloud financing" mode of family farm from the perspective of agricultural industry
chain. In Paper presented at the 17th IEEE international wireless communications and mobile computing conference. IEEE IWCMC), Electr Network. Jun 28-Jul 02.
Woolpert, M. E., Morse, C. E., & Barbano, D. M. (2016). A qualitative assessment of perception and communication barriers that interfere with the transfer of
knowledge to dairy farmers. Journal of Animal Science, 94(Suppl. 5), 279–280. https://doi.org/10.2527/jam2016-0590
Zeng, Y., Guo, H., Yao, Y., & Huang, L. (2019). The formation of agricultural e-commerce clusters: A case from China. Growth and Change, 50(4), 1356–1374.
Zhang, X., Zhang, J. J., Wan, G. H., & Luo, Z. (2020). FINTECH, growth and inequality: Evidence from China’s household survey data. Singapore Economic Review, 65,
75–93. https://doi.org/10.1142/s0217590819440028
Zolli, A., & Healy, A. M. (2012). Resilience: Why things bounce back. Hachette UK.

13