Do the Regional E-Commerce Transactions Divides in China Converge?

Abstract

This study examines the dynamic change in the regional e-commerce transactions divides in China from 2013 to 2019 using convergence analysis methods. We use population-adjusted annual e-commerce transaction data from 31 provinces. These provinces are categorized into the three varying levels of income, urbanization, education and geography to differentiate the regional e-commerce divides. The regions with the highest income, urbanization, education and the East produced largest amount of e-commerce transactions, followed by respective middle and low-level regions as of 2013. During the study period, however, relative digital divide converged narrowed in four cases and diverged expanded in the other four cases. Furthermore, the 2019 relative digital divides changed only nominally from 2013. Thus, we rely on the alternative measure of absolute digital divide to conclude that the critical role of increasing e-commerce transactions was continued by the high income, high urbanization, high education, and Eastern region in that order. For future research, it is suggested that the platform competition theory may be combined with convergence theory to better explain complex process of changing regional e-commerce divide.

Keywords: Regional e-commerce divide, speed of catch-up, relative digital divide, absolute digital divide, convergence, divergence, platform competition