The Impact of Cross-Border E-Commerce Policy on Imports

Abstract

In the era of the digital economy, cross-border e-commerce is a specific embodiment of “internet plus international trade.” Based on the promoting policy of “The product lists of cross-border e-commerce retail imports” and Chinese customs transaction data, this study uses a difference-in-differences methodology to analyze the effects of cross-border e-commerce on China's import trade. The results show that the implementation of the cross-border e-commerce policy has significantly contributed to the growth of import value, price, and quantity. The promoting effects mainly derive from the intensive margin of imports and the extensive margins of importing source countries. Digital technology and development determine the policy's effectiveness. The heterogeneous effects of import source countries and domestic import regions imply an enlarging inequality effect from cross-border e-commerce and the digital economy.