International Journal of Business and Economics Research

Submit a Manuscript

Publishing with us to make your research visible to the widest possible audience.

Propose a Special Issue

Building a community of authors and readers to discuss the latest research and develop new ideas.

Research Article |

Cross-Border E-commerce and Economic Growth: Evidence from the “10+1” Free Trade Agreement

Cross-border e-commerce (CBEC), as a new driving force to economy, has been flourishing recently. Under the implementation of “10+1” Free Trade Agreement in 2010 and the Upgrade Protocol of “10+1” Free Trade Agreement in 2016, China and ASEAN countries has witnessed a prosperous bilateral CBEC transaction. As early as 2016, ASEAN has become China’s 9th-largest trading partner in CBEC, and China’s 3rd-largest CEBC export market. According to the customs statistical data from 2019 to 2023, China has maintained strong CBEC ties with ASEAN in B2B and petty B2C trade. And estimated bilateral CBEC volume appears an upward movement especially after the year of 2010 and 2016. While how this impressive CBEC trade benefiting from “10+1” FTA affects ASEAN’s economic growth is still less been investigated. Our paper employs a Generalized DID method by examining the exogenous shocks from “10+1” Free Trade Agreement coming into force in 2016 to answer this question. By empirically analyzing the impact of CBEC on consumers, firms and labor, this study also comprehensively elucidate mechanisms through which CBEC influences macro-economic growth. We find that, first, CBEC reduces firms’ procurement and inventory management cost and improves productivity through spillovers effect, especially for SMEs, to boost international trade. Second, CBEC by reducing information cost, expanding consumption choices and lowering goods’ price for consumers fosters consumption. Third, increasing job opportunities and enhancing labor productivity brought by CBEC lead to a higher income, which promotes higher consumption. Consumption and trade boost economic growth. This paper provides theoretical evidence for further strengthening China-ASEAN economic cooperation and CBEC collaboration.

Cross-Border E-commerce, International Trade, Economic Growth, China-ASEAN Free Trade Agreement

APA Style

(Suri Ho), H. T. H., Yi, C., Shen, Y. (2023). Cross-Border E-commerce and Economic Growth: Evidence from the “10+1” Free Trade Agreement. International Journal of Business and Economics Research, 12(6), 197-213.

ACS Style

(Suri Ho), H. T. H.; Yi, C.; Shen, Y. Cross-Border E-commerce and Economic Growth: Evidence from the “10+1” Free Trade Agreement. Int. J. Bus. Econ. Res. 2023, 12(6), 197-213. doi: 10.11648/j.ijber.20231206.14

AMA Style

(Suri Ho) HTH, Yi C, Shen Y. Cross-Border E-commerce and Economic Growth: Evidence from the “10+1” Free Trade Agreement. Int J Bus Econ Res. 2023;12(6):197-213. doi: 10.11648/j.ijber.20231206.14

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

1. Xing, Z. The impacts of Information and Communications Technology (ICT) and E-commerce on bilateral trade flows. International Economics and Economic Policy. 2018, 15(3), 565-586.
2. Zwass, V. Electronic Commerce: Structures and Issues. International Journal of Electronic Commerce. 1996, 1(1), 3-23. DOI: 10.1080/10864415.1996.11518273.
3. Terzi, N. The impact of e-commerce on international trade and employment. Social and Behavioral Sciences. 2011, 24, 745-753.
4. Tu, Y., Shangguan, J. Z. Cross-Border E-Commerce: A New Driver of Global Trade. In: Agarwal, J., Wu, T. (eds.) Emerging Issues in Global Marketing. Springer, Cham. 2018, 51-64.
5. Wang, C., Liu, T., Wen, D., Li, D., Vladislav, G., Zhu, Y. The Impact of International Electronic Commerce on Export Trade: Evidence from China. Journal of Theoretical and Applied Electronic Commerce Research. 2021, 16(7), 2579–2593.
6. Qin, Y., Bryna M. Effect of Cross-Border E-Commerce on International Trade of Emerging Country in the Case of China. Malaysian E-Commerce Journal, Zibeline International Publishing. 2018, 2 (1), 9-12.
7. Yin, Z. H., Choi, C. H. The effects of China’s cross-border e-commerce on its exports: a comparative analysis of goods and services trade. Electronic Commerce Research. 2023, 23, 443–474.
8. Qu, L., Chen, Y. The Impact of e-commerce on China's Economic Growth. In Wuhan International Conference on E-Business, Wuhan, China, 2014.
9. Zhong M, Wang Z, Ge X. Does Cross-Border E-Commerce Promote Economic Growth? Empirical Research on China’s Pilot Zones. Sustainability. 2014, 14(17), 110-32.
10. Elseoud, M. S. A. Electronic commerce and economic growth in Saudi Arabia. International Journal of Economics, Commerce and Management. 2014, 2(5), 1-15.
11. Georgiou, M. N. E-Commerce Has a Positive Impact on Economic Growth: A Panel Data Analysis for Western Europe. European Economics: Macroeconomics & Monetary Economics eJournal, 2009.
12. Parishev, A., Hristovski, G., Jolakoski, P., Stojkoski, V. E-Commerce Impact on Economic Growth. In Proceedings of the 1st international scientific conference "Economic and Business Trends Shaping the Future”, Skopje, Republic of North Macedonia, 2020.
13. Ellison, G., Ellison, S. F. Search, Obfuscation, and Price Elasticities on the Internet. Econometrica. 2009, 77(2), 427-452.
14. Prieger, J., Heil, D. The Macroeconomic Impacts of E-Business on the Economy. Pepperdine University, School of Public Policy Working Papers, Paper 13, 2009.
15. Atrostic, B. K., Nguyen, S. V. Computer Networks and U.S. Manufacturing Plant Productivity: New Evidence from the CNUS Data. Center for Economic Studies, U.S. Census Bureau, Working Papers 02-01, 2002.
16. Criscuolo, C., Waldron, K. E-commerce and Productivity. Economic Trends, 2003, 600, 52-57.
17. Lucking-Reiley, D., Spulber, D. F. Business-to-Business Electronic Commerce. Journal of Economic Perspectives. 2001, 15(1), 55-68. DOI: 10.1257/jep.15.1.55.
18. Vulkan, N. Introduction to The Economics of E-Commerce: A Strategic Guide to Understanding and Designing the Online Marketplace. New Jersey, US: Princeton University Press; 2003, pp. 59-90.
19. Melitz, M. J. The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica. 2003, 71 (6), 1695-1725.
20. Dolfen, P., Einav, L., Klenow, P. J., Klopack, B., Levin, J. D., Levin, L., Best, W. Assessing the Gains from E-Commerce. American Economic Journal: Macroeconomics. 2023, 15 (1), 342-370. DOI: 10.1257/mac.20210049.
21. Santarelli, E., D’Altri, S. The Diffusion of E-commerce among SMEs: Theoretical Implications and Empirical Evidence. Small Business Economics. 2003, 21 (3), 273–283.
22. Singh, S. Impact of e-commerce on economic models: little to lose; more to gain. International Journal of Trade and Global Markets. 2008, 1, 319-337. doi: 10.1504/IJTGM.2008.020435.
23. International Telecommunication Union. Measuring the Information Society Report 2014. CH-1211 Geneva Switzerland. Available from: [Accessed 10 October 2023].