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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. https://doi.org/10.11648/j.ijber.20231206.14

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 (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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