The Effects of Cross-Border E-Commerce on International Trade and Economic Growth: A Case of China

Ho Thi Hang Suri Ho and Togo Adjouro

International Journal of Economics and Finance, 2021, vol. 13, issue 12, 82

Abstract: 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.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:13:y:2021:i:12:p:82

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