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Can Cross-border E-commerce Declare the Death of Distance

【Authors】
MA Shuzhong, FANG Chao & ZHANG Hongsheng
【WorkUnit】
Zhejiang University, 310027.
【Abstract】

Based on the rapid development of China's crossborder e-commerce, we re-examine the relationship between geographical distance and trade scale, and further explore the mechanism of how the internet weakens the negative impact of geographical distance. We arrive at the following conclusions through empirical tests: compared with traditional trade, cross-border e-commerce export is less affected by geographical distance; the development of internet can weaken the negative impact of geographical distance and promote the growth of cross-border e-commerce exports; from a micro perspective, the negative impact of geographical distance and the weakening effect of the internet will work on the extensive margin and the intensive margin of cross-border e-commerce exports, and especially so for large- and medium-sized companies. These results provide strong evidence for the government's promotion of cross-border ecommerce, the implementation of the “internet + foreign trade” and the construction of the internet silk road.
 
JEL:L81, F14, F15

【KeyWords】
Cross-border E-commerce, Geographic Distance, Internet, Gravity Model