Electronic Commerce, Transaction Cost And Global Value Chain

As a long-term trend in the world,economic globalization has had a profound impact on the economic growth of various countries.Although being a large economy,China is in the bottom of the global industry value chain gaining little share of profit.It is of great strategic significance to improve the status of Chinese in the global value chain.The most significant technological progress is the popularization and development of the internet in twenty-first Century.In 2015,China has surpassed the United States to become the largest electronic commerce economy,with electronic commerce sales reaching 18 trillion RMB and cross-border electronic commerce reaching the size of 5 trillion and 400 billion RMB.Electronic commerce plays a huge role in promoting China's integration into the global value chain.This paper attempts to examine the impact of electronic commerce on the status of the global value chain from the perspective of transaction costs.This paper first discusses the role of electronic commerce supplier to reduce transaction costs.Then,through the analysis of a new classical extension of the Ricardian model of the exogenous comparative advantage,the paper analyzes the influence of transaction efficiency on the international division of labor and the status of the national value chain.We find that the improvement of transaction efficiency(the reduction of transaction costs)has promoted the formation of global production networks and the status of the national value chain.We use the international panel data in 1995-2011 years,using the domestic added value and the international trade as explanatory variables,the number of Internet users as explanatory variables,to establish a fixed effect model.After analyzing the impact of electronic commerce on global value chain,we find that electronic commerce,cross-border electronic commerce,capital intensity,human capital and general economy growth promotes a country to enhance the global value chain position.