Differences in Distance and Spatial Effects on Cross-Border E-Commerce and International Trade

Abstract

Distance and space are important factors affecting international trade, but they have different effects on cross-border e-commerce (CBE) due to the creation of the Internet. This study utilizes spatial autocorrelation, the multi-dimension gravity model and the Spatial Durbin model to conduct an comparative analysis of international trade and CBE within one-belt one-road (BR) countries. Our study obtained several key findings. Firstly, the spatial autocorrelation effect which exists in international trade does not exist in CBE. Secondly, the geographical distance effect of CBE is not significant, which is different from that of international trade. Thirdly, CBE is affected by GDP, culture, policy and institution distances which is not entirely consistent with international trade. Finally, the Spatial Durbin model shows that the spillover effect of CBE and international trade are both significant in the inverse distance weight matrix. These findings provide not only important theoretical contributions but also a practical guide for Government policy makers of the BR and CBE.