Saudi Journal of Business and Management Studies (SJBMS)
Volume-3 | Issue-03 | 253-260
Review Article
E-commerce and International Trade: Evidence from China
Yugang He
Published : March 30, 2018
Abstract
The widespread use of E-commerce in the world is a new revolution in
international trade. But it is regarded as a double-edged sword for the international
trade. Some figure that E-commerce has a positive impetus for the development of
international trade. The rest holds the view that E-commerce has worsened the trade
conditions, especially, in the developing countries, like the massive tax loss. However,
there are a few empirical studies on the dynamic relationship between E-commerce
and international trade in the developing countries. China as a biggest developing
country in the world, therefore, this paper uses the datum from 2000 to 2016 to
explore the dynamic relationship between E-commerce and international trade in
China via the method of combining theoretical model and empirical analysis.
Preforming an empirical analysis under vector error correction model, the empirical
analysis results indicate that the long-run relationship between E-commerce and
international trade exists in China. More specifically, E-commerce has a positive
effect on international trade.