E-Commerce as a Potential New Engine for Growth in Asia

30 Pages Posted: 28 Jul 2019

See all articles by Tidiane Kinda

Tidiane Kinda

International Monetary Fund (IMF)

Date Written: July 2019

Abstract

The use of e-commerce around the world has accelerated in recent years, with Asia, led by China, spearheading the rise. Using cross-country enterprise survey data, this paper shows that firms engaged in e-commerce have higher productivity and generate a larger share of their revenues from exports than other firms. This is particularly true in Asia, where firms have 30 percent higher productivity and generate about 50 percent more of their revenues from exports. The results presented in this paper are robust to the use of instrumental variables, which highlight possible larger effects of e-commerce on Asian productivity and exports when essential elements are in place for its effective use, such as reliable electricity, telecommunication, and transport infrastructure. Despite the rapid growth of e-commerce in recent years, gaps persist in digital infrastructure and legislation, preventing many Asian countries from fully reaping the potential benefits of e-commerce.

Keywords: Total factor productivity, Credit, Human capital, Development, Consumption, e-commerce, productivity, exports, factor productivity, TFP, firm performance, ijk

JEL Classification: C21, L25, O14, E01, O4, E2, E52, F16

Suggested Citation

Kinda, Tidiane, E-Commerce as a Potential New Engine for Growth in Asia (July 2019). IMF Working Paper No. 19/135, Available at SSRN: https://ssrn.com/abstract=3427672

Tidiane Kinda (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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