A Study On The Dynamic Relationship Beteween B2b E-Commerce And Economic Growth

Research Article
Yugang He and Xingang Huan
DOI: 
http://dx.doi.org/10.24327/ijrsr.2018.0805.2171
Subject: 
science
KeyWords: 
B2B e-Commerce, Economic Growth, Vector Error Correction Model
Abstract: 

As the increasing focus of new economy, the e-Commerce is leading the fundamental transformation in the economic field. Setting trading object as a standard, the e-Commerce can be categorized into B2B, B2C, B2G, C2G, C2C, ABC, C2B2S and P2D. In this paper, most attention will be drawn to the dynamic relationship between B2B e-Commerce and economic growth. In order to make operating mechanism between them mostly understood, the time series from 2000 to 2016 is applied to conduct an empirical analysis under the vector error correction model. The B2B eCommerce is treated as an independent variable; the GDP is treated as a dependent variable. Via the co-integration test, there is a long-run relationship between B2B e-Commerce and economic growth. Meanwhile, the Granger causality test also indicates that the B2B e-Commerce is one of the most major reasons that promote economic growth. More importantly, even though their relation is deviate from the long-run equilibrium, the B2B e-Commerce has a positive effect on economic growth. In summary, in the short run, 1% increase in B2B e-commerce will result in 0.075% increase in economic growth; in the long run, 1% increase in the B2B e-Commerce can lead to 0.376% increase in the economic growth. The long-run positive effect of B2B e-Commerce on economic growth is greater than that of the short-run positive effect. However, their relation will return to long-run equilibrium by 0.017% (opposite direction).