E-commerce And Enterprises' Trans-provincial Investment

Previous research shows that if efficiency distortion caused by market segmentation is rectified,manufacturing added value will grow by 5%without increasing element input.While this figure just roughly measures the static loss of market segmentation,taking the dynamic loss into consideration,growth will be more amazing.After all this analysis is that only by achieving free flowing of production factors,could the trade barriers of domestic market be finally broken and the distortion of factors allocation be ultimately corrected.Depending on the natural attribute of being free from distance,Internet could achieve Multi-directional unification of access conditions,trading rules,credit system,service and financial and logistics system,thereby breaking through regional market barriers and forming unified domestic market.Therefore,e-commerce's development provides a new way for enterprises to round the market segmentation and make trans-provincial investment.This paper firstly reviews scholars' researches about Chinese market segmentation and firm's adoption of e-commerce,and collects data to analyze the development and present situation of e-commerce in China,then from two aspects of demand and supply to clarify how the adoption of e-commerce acts on firm's decision on trans-provincial investment.Afterwards,based on the data of Chinese manufacturing listed company,DID and DDD empirical analysis are carried to test whether the shock brought by rapid development stage of e-commerce has an impact on enterprise's decision about trans-provincial investment.The results show that from the industrial perspective,the adoption of e-commerce makes the possibility of trans-provincial investment in clothing and durable consumer goods industry relatively increased;from the enterprise individual perspective,impact that the adoption of e-commerce has on enterprise's decision about trans-provincial investment is also related to the enterprise's usage frequency of Internet,and the specific representation is complex;from the regional perspective,the adoption of e-commerce makes the possibility of trans-provincial investment in regions with sound Internet infrastructure is relatively increased.Based on the above theoretical and empirical results,this paper eventually puts forward policy recommendations from the regional,industrial and enterprise individual aspects,hoping to contribute to the development of e-commerce in China.