The Impact of Cross-border E-commerce on International Trade

Ayoub Yousefi ()
Additional contact information
Ayoub Yousefi: King's University College at Western University, Canada

No 2504082, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: This study investigates whether the growing cross-border electronic commerce (CBEC) increases the volume of international trade or merely replaces the traditional mode of physical delivery. We carry out a comparative analysis of trade on Digitizable Products (DP) by developed and developing countries. The study suggests that developing countries have in the recent past penetrated into developed countries? markets and made up for the fall in their share of world Total trade as well as trade in DP. As a result, electronic delivery of digital products promises benefitting developing countries by gaining deeper access to international markets. This is, in part, due to massive Internet penetration and its continued subscription growth. In addition, digitization of information products is taking place at an ever increasing rate which makes it easier to preserve, access and distribute it through the Internet. Granger causality tests suggest that causality runs form export of Digitizable products to the export of Total products for the group of developing countries, China, Hong Kong and Singapore. The results are in line with our earlier descriptive assessment. This result provides foundation for empirical estimation of the impact of CBEC on the volume of international trade. The paper suggests that given its current magnitude, market efficiency, and growth trajectory, CBEC offers an ?additional? basis for explaining the flow of international trade, particularly out of developing countries. As a policy implication, we argue that in the transition period e-commerce creates specific challenges as well as new opportunities for businesses and economies around the world. To facilitate growth of CBEC, nations need to adopt new arrangements at the national and international levels. At the national level, governments should provide support and encourage competition and innovation. Governments should also cooperate at the international level though institutions such as WTO, UNCTAD, and EU to enhance security of the Internet and promote fair and transparent operations of e-commerce.

Keywords: E-Commerce; Cross-border-E-Commerce; International Trade; Granger Causality Test. (search for similar items in EconPapers)
JEL-codes: F14 O30 O57 (search for similar items in EconPapers)
Pages: 1 page
Date: 2015-06
New Economics Papers: this item is included in nep-cse, nep-ict, nep-int and nep-sea
References: Add references at CitEc
Citations: Track citations by RSS feed

Published in Proceedings of the Proceedings of the 16th International Academic Conference, Amsterdam, Jun 2015, pages 616-616

Downloads: (external link)
https://iises.net/proceedings/16th-international-a ... =25&iid=078&rid=4082 First version, 2015

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:2504082

Access Statistics for this paper

More papers in Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences
Bibliographic data for series maintained by Klara Cermakova ().