Effects of cross-border E-commerce customs declaration ceiling increase on export performance under COVID-19 conditions

Abstract

PurposeThis study examines the impact of raising the ceiling value of Electronic Commerce Custom Declarations (ECCD) on Turkey's export performance processed via ECCD during the COVID-19 period.Design/methodology/approachThis paper examines the impact of the pandemic conditions on Cross-Border Electronic Commerce (ECCD) exports from Turkey to 47 countries over 42 months before and during the pandemic. An empirical analysis using the Pooled Mean Group (PMG) and Mean Group (MG), Panel Autoregressive Distributed Lag (ARDL) approach was conducted to identify the factors affecting export flows.FindingsThe findings suggest that raising the ceiling of the ECCD trade is a vital factor in increasing exports. and this result is robust after controlling for pandemic conditions. On the other hand, although the COVID-19 shock mitigates the export volume of ECCD in the short run, it changes by reversal and increases the export level in the long run. Additionally, the number of COVID-19 cases and deaths in Turkey have a significant and negative impact on export flows in the short run, while they have a positive and significant effect in the long run.Practical implicationsThe results of this study have practical implications for policymakers, emphasizing the potential and significance of Cross-Border E-Commerce (CBEC) trade.Originality/valueThe study is a pioneering effort in the literature of CBEC to explore how changes in the upper limit on customs declarations can affect export flows, taking into account the impact of the COVID-19 pandemic.