Does cross-border e-commerce development promote the improvement of residents' income level? Evidence from China

Lifeng Cai, Qunyang Du, Liner Bao, Agyenim Boateng and Zhongyuan Li

Research in International Business and Finance, 2025, vol. 77, issue PA

Abstract: Cross-border e-commerce is an important driver of regional economic growth. This article evaluates the impact of the development of cross-border e-commerce commerce on residents' income based on panel data from 300 Chinese cities over the period 2002–2023 in China, using the establishment of a comprehensive cross-border e-commerce pilot zone as a quasi-natural experiment. By employing a difference-in-differences (DID) model, this study examines the impact of these pilot zones on residents’ income levels. The findings reveal that the establishment of cross-border e-commerce pilot zones significantly enhances residents’ income levels, and this conclusion remains robust across various tests. Mechanism analysis further indicate that these zones contribute to income growth through three primary channels: exports, industrial development, and employment. Heterogeneity analysis indicates that the impact of cross-border e-commerce comprehensive pilot zone on residents’ income levels varies by city size and region. Specifically, these zones have a more significant effect on income levels in small cities. Regionally, the impact is particularly pronounced in the eastern region, moderately reduced in the central region, and negligible in the western region. These findings offer a theoretical foundation for promoting the income level of residents through the development of cross-border e-commerce.

Keywords: Cross-border e-commerce comprehensive pilot zone; Exportation; Industrial structure; Employment; Residents’ income (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531925001631
Full text for ScienceDirect subscribers only

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:eee:riibaf:v:77:y:2025:i:pa:s0275531925001631

DOI: 10.1016/j.ribaf.2025.102907

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().