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Nexus of Technology Adoption, E-commerce, and Global Value Chains: The Case of Asia

Author

Listed:
  • JONG WOO KANG

    (Asian Development Bank, Metro Manila, Philippines)

  • DOROTHEA M. RAMIZO

    (Asian Development Bank, Metro Manila, Philippines)

Abstract

Existing literature has examined either the key drivers of global value chain (GVC) exports or the factors affecting e-commerce growth. Studies that investigate the impact of e-commerce, in particular business-to-consumer (B2C) e-commerce, on GVCs are largely missing. The growing prevalence of digital platforms centered around e-commerce marketplaces motivates this study to examine if e-commerce growth in an economy can affect its GVC exports and how information and communication technology infrastructure and technology adoption measures, payment systems, and delivery mechanisms can facilitate this growth. Panel ordinary least squares, feasible generalized least squares, and two-stage least squares estimations are used to determine the relationship between GVC exports and e-commerce sales. The results indicate empirical evidence of the positive impact of B2C e-commerce on GVC exports. The robust and positive impact of B2C e-commerce on GVC exports—when instrumented by secure internet servers, internet bandwidth, and digital payment schemes—suggests growth of B2C e-commerce in an economy can contribute to its GVC participation.

Suggested Citation

  • Jong Woo Kang & Dorothea M. Ramizo, 2022. "Nexus of Technology Adoption, E-commerce, and Global Value Chains: The Case of Asia," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 39(02), pages 45-73, September.
    • Handle: RePEc:wsi:adrxxx:v:39:y:2022:i:02:n:s0116110522500147
    DOI: 10.1142/S0116110522500147
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    Cited by:

    1. Mohammed Musa Bayero, 2023. "IT Infrastructure, Knowledge Management and Firm Competitiveness: Exploring Mediating Role of IT Outsourcing in Nigeria," International Journal of Global Business and Competitiveness, Springer, vol. 18(1), pages 43-58, June.

    More about this item

    Keywords

    digital payment; e-commerce; GVC; ICT infrastructure;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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