The Effect of Cross-Border E-Commerce on China’s International Trade: An Empirical Study Based on Transaction Cost Analysis

By Yu Wang, Yi Wang, Soo Hee Lee. 2017

115 citations recorded by the source corpus.

Reducing transaction costs by means of policy intervention could generate comparative advantages and contribute to the growth of international trade. Chinese government agencies have introduced a number of policies in support of rapidly growing cross-border e-commerce to promote China’s international trade. However, the previous literature has not empirically verified the precise effect of these policies on the growth of international trade while focusing on the impact of cross-border e-commerce on trade distance and consumer welfare. To address this gap, this paper investigates the impact of cross-border e-commerce on international trade in the context of China, mainly from the perspective of transaction cost economics in conjunction with the traditional comparative advantage model by analyzing information cost, negotiation cost, transportation cost, tariffs and middlemen cost separately. Firstly, the new theoretical model suggests that cross-border e-commerce may have a positive role in promoting international trade only when the negative impact caused by tariff cost and transportation cost is offset. Secondly, our result shows that cross-border e-commerce has a positive effect on the growth of China’s international trade in each year. However, the positive effect does not show incremental growth over time, possibly as a result of the weak implementation of favorable policies in trade, in addition to global trade shrinking.

Subfields: Artificial Intelligence, Business and International Management, Industrial and Manufacturing Engineering

View Paper: https://www.semanticscholar.org/paper/49b3d2a21cd129876d1711fb5b3789b4f3546809

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

1. R. Maskeliūnas
2. Xuan Phuc Tran
3. Quoc Trung Pham
4. S. Misra

Citations in the corpus

• Relationship between Convenience, Perceived Value, and Repurchase Intention in Online Shopping in Vietnam (2018, background): “development of both national economy and international trade [3], and provides a sustained competitive advantage for small and medium-sized enterprises (SMEs) over their competitors [4].”