Role of E-commerce on Trading Sector in China

Abstract

E-commerce is rapidly developing along with the development of information technology in China. This paper is aimed at analyzing the contribution of E-commerce on the trading sector in China and estimating the macroeconomic and sectoral impact of E-commerce respectively by using fixed effect panel data based on the data from seven selected regions in China over the period of 2008-2016. The study found that E-commerce plays a significant and positive role in the economic growth at either macroeconomic level or sectoral level. Every 1 percent increase in E-commerce's sale leads to an increase of 0.54 percent in the output in the trading sector. E-commerce has a great influence on trade sector, and it has become one of the main driving forces for economic development in China.