Open AccessThe Effects of Cross-Border E-Commerce on International Trade and Economic Growth: A Case of China
Author(s) -
Ho Thi Hang,
Togo Adjouro
Publication year - 2021
Publication title -
international journal of economics and finance
Language(s) - English
Resource type - Journals
eISSN - 1916-9728
pISSN - 1916-971X
DOI - 10.5539/ijef.v13n12p82
Subject(s) - china , international trade , economics , order (exchange) , trade barrier , economic integration , international economics , government (linguistics) , political science , finance , linguistics , philosophy , law
With the financial crisis in 2008 and its negative consequence on traditional foreign trade and economic growth, China has adopted cross-border e-commerce as a new international business model. The purpose was to enhance international trade and sustain economic growth. However, despite the remarkable increase of cross-border e-commerce, China’s traditional international trade and economic growth have continued to grow slowly. This paper used the ARDL bounds test over the period 2005-2020 to examine the effect of China’s cross-border e-commerce on international trade and economic growth. The findings from our research indicate that in both the short-run and long-run, cross-border e-commerce has positively impacted international trade and economic growth in China. Therefore, in order to promote trade and economic growth, the government should continue to support the development of cross-border e-commerce.