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

Gachon Center of Convergence Research Working Paper Series 2022-04

32 Pages Posted: 30 Sep 2022

See all articles by Yu Sang Chang

Yu Sang Chang

Gachon University - College of Business and Economics

Sung Jun Jo

Gachon University - College of Business and Economics

Myeong Cheol Choi

Dept. of Global Business, Gachon University

Young Eun Kim

Gachon University - College of Business

Date Written: August 23, 2022

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

Suggested Citation

Chang, Yu Sang and Jo, Sung Jun and Choi, Myeong Cheol and Kim, Young Eun, Do the Regional E-Commerce Transactions Divides in China Converge? (August 23, 2022). Gachon Center of Convergence Research Working Paper Series 2022-04, Available at SSRN: https://ssrn.com/abstract=4197603 or http://dx.doi.org/10.2139/ssrn.4197603

Yu Sang Chang (Contact Author)

Gachon University - College of Business and Economics ( email )

Korea

Sung Jun Jo

Gachon University - College of Business and Economics ( email )

Korea

Myeong Cheol Choi

Dept. of Global Business, Gachon University ( email )

1342 Seongnam-daero, Sujeong-gu, Seongnam-si
Seongnam, Gyeinggi-do
Korea, Republic of (South Korea)

Young Eun Kim

Gachon University - College of Business ( email )

1342 Seongnam-daero, Sujeong-gu, Seongnam-si
Seongnam, Gyeinggi-do
Korea, Republic of (South Korea)

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