The impact of e-commerce and R&D on firm-level production in China: Evidence from manufacturing sector

2023-03-03
The impact of e-commerce and R&D on firm-level production in China: Evidence from manufacturing sector
Authors:dr. Tomas BaležentisIERDFacang Zhu Qiule Shi Chonghui Zhang

Abstract

 

implementation often requires high-level technical infrastructure. This study regards both e-commerce and R&D as input factors and analyses their impact on firm output in the manufacturing sector of China. We find that ecommerce capital stocks and R&D capital stocks have a significant positive effect on the output growth, with
R&D being more influential than e-commerce. Meanwhile, the inter-industry network externalities of e-commerce capital stocks have a significant positive impact on production growth. Still, the intra-industry network externalities of e-commerce capital stocks are significantly negative, which means online purchase and sales
through e-commerce may induce product imitation (i.e., business stealing) and, thus, reduce output for certain companies in the industry. These findings suggest that R&D and favourable external innovation environment are the key factors for enhancing enterprise production levels.

 

Zhu, F.; Shi, Q.; Baležentis, T.; Zhang, C. 2023. The impact of e-commerce and R&D on firm-level production in China: Evidence from manufacturing sector. Structural change and economic dynamics : Elsevier. ISSN 0954-349X. June, 65, p. 101–110. DOI: 10.1016/j.strueco.2023.02.008. [Scopus; Social Sciences Citation Index (Web of Science)].

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