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The Influence of Internet on Chinese International Trade Flow and the Regional Disparity

Author: SunWei
Tutor: HanMinChun
School: Huazhong University of Science and Technology
Course: International Trade
Keywords: Internet International trade volume Panel data Regional differences
CLC: F752
Type: Master's thesis
Year: 2011
Downloads: 47
Quote: 0
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Abstract


The development of internet makes more and more domestic and internationalscholars focus on the economical problems with internet. Internet economy is a powerfulmotive force of the unceasing development of economic globalization. Enterprises rely onnetwork platform, making use of the e-business; crossing the limit of time and space,make trading range expand and transaction cost reduce. As a result, international divisionof labor goes on deepening, pushing forward the structure of trade, the mode of trade andthe pattern of trade changing, and then make the trade volume change. After ten years ofdevelopment, the scale of internet in our country gradually expanded, and the total volumeof international trade increased. At the same time, there is a huge gap between thedevelopments of east, middle and west China. Therefore, this paper bases on the analysisof China’s Internet development and international trade status as well as the regionaldifferences, researching whether the development of the Internet has an impact on China’sforeign trade, and to explore the differences of trade flows on the eastern, central andwestern areas affected by Internet.The author uses Chinese31provinces of panel data, covering the periods of1999-2009, using fixed effect and random effect model to find the impact of internet ontrade volume as well as the regional differences. Main findings of the paper are asfollowed:(1)The development of internet and international trade in our country presents asituation of “high east and low west”.(2) Internet has a significant promoter action on theforeign trade of our country, and the impact on the export is greater than import.(3)Internet has a significant promoter action on the foreign trade of eastern, central andwestern areas. However, there are some differences of the impact between the three areas.The promoter action of internet on the foreign trade shows that eastern areas＞centralareas＞western areas. Based on the conclusions, the dissertation puts forward somesuggestions and policies.

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CLC: > Economic > Trade and Economic > States foreign trade > China's foreign trade
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