Sources of Cross-national Heterogeneity in E-retail Spending: Evidence from Country-Level Data

Nir Kshetri, Ralf Bebenroth and Nicholas C. Williamson
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Nicholas C. Williamson: The University of North Carolina at Greensboro, USA

No DP2010-29, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: The global e-retail industry is growing rapidly. Economies worldwide, however, differ greatly in the development of the e-retail industry. Using data from forty-seven economies, this paper empirically examines how technological, economic, and institutional factors explain international heterogeneity in e-retail spending. The results indicated that broadband penetration was the strongest predictor of e-retail spending. We found that externalities mechanisms generated by the development of the conventional retail industry drives the growth of the e-retailing industry. Our findings also indicated that the degree of concentration of traditional retail sites is negatively related to the development of the e-retailing industry.

Keywords: E-retailing externality mechanisms; Time series cross sectional models; Economic freedom; Broadband penetration (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-10
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