Journal of Advances in Developmental Research

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E-Commerce as a Catalyst for Socio-Economic Transformation: An Empirical Analysis of Rural-Urban Market Integration in India

Author(s) Dr. Abdul Rahman
Country India
Abstract Indian e-commerce has redefined the dynamics of transactions among producers, intermediary and consumers in both rural and urban areas. E-commerce began as an upper-class, urban, Internet-based retail chain. Now, it represents a comprehensive platform economy that addresses matters of inclusion, entrepreneurship, price discovery, and regional integration. This study explores the role of e-commerce in mediating the process of economic transition via the interaction of the rural and urban market in India. The theoretical framework for this study is anchored in market integration and the death of distance hypothesis, where digital platforms reduce the informational and transaction costs that traditionally isolated markets from one another in space. Using academic and policy-related information sources, including the literature published between 2000 and 2017, this study explores structural drivers of Indian e-commerce, such as telecommunication development, smartphone diffusion, digital payment mechanisms, and state-sponsored initiatives on digitalization (Digital India). This study also delves into some economic and social factors that facilitate economic change using e-commerce to minimize transaction costs, improve price transparency, micro, small and medium-sized enterprise (MSME) engagement, alter consumer behaviors, financial inclusion, and female-led digital enterprises. The article also proposes a simplistic model of convergence to depict how rural-urban price disparities/access barriers might decrease as a result of digital intermediation. In fact, although it is apparent from the analysis of the study report that there exists immense possibility for integration, at the same time, the issues of inadequate rural logistics, lack of digital literacy, distrust, and regulation uncertainties come to the fore. The current paper also argues that e-commerce should be viewed as an instrument of inclusive growth if complemented with institutional reforms and investments in rural infrastructure.
Keywords e-commerce, rural-urban integration, socio-economic transformation, India, digital economy, market integration, MSMEs.
Published In Volume 9, Issue 1, January-June 2018
Published On 2018-04-03
Cite This E-Commerce as a Catalyst for Socio-Economic Transformation: An Empirical Analysis of Rural-Urban Market Integration in India - Dr. Abdul Rahman - IJAIDR Volume 9, Issue 1, January-June 2018. DOI 10.71097/IJAIDR.v9.i1.1840
DOI https://doi.org/10.71097/IJAIDR.v9.i1.1840
Short DOI https://doi.org/hbxcxm
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