International Journal of Business and Economics Research

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

Received: 11 November 2023    Accepted: 29 November 2023    Published: 14 December 2023
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Abstract

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.

DOI 10.11648/j.ijber.20231206.14
Published in International Journal of Business and Economics Research (Volume 12, Issue 6, December 2023)
Page(s) 197-213
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

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

References
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[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. https://doi.org/10.1007/s10660-021-09483-y
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[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.
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  • 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

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    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

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    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

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  • @article{10.11648/j.ijber.20231206.14,
      author = {Ho Thi Hang (Suri Ho) and Can Yi and Yao Shen},
      title = {Cross-Border E-commerce and Economic Growth: Evidence from the “10+1” Free Trade Agreement},
      journal = {International Journal of Business and Economics Research},
      volume = {12},
      number = {6},
      pages = {197-213},
      doi = {10.11648/j.ijber.20231206.14},
      url = {https://doi.org/10.11648/j.ijber.20231206.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20231206.14},
      abstract = {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.
    },
     year = {2023}
    }
    

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    AB  - 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.
    
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Author Information
  • School of Economics, Shanghai University, Shanghai, China

  • School of Economics, Nankai University, Tianjin, China

  • School of Economics, Shanghai University, Shanghai, China

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