E-Commerce and Cross-Regional Transactions: Analysis from the Perspective of Transaction Cost Economics

The development of digital information technology has led to the increasingly important role played by e-commerce in trading activities. On the basis of a natural experiment including national e-commerce demonstration cities, this paper examines the phases in which e-commerce can reduce transaction costs and affect enterprises’ cross-regional trading activities. Results indicate that e-commerce helps promote cross-city transactions for enterprises by reducing ex-ante search and negotiation costs. However, to some extent, the transaction scope’s expansion also increases relevant enterprises’ ex-post governance costs related to uncertainties, asset specificity, and transaction frequency when dealing with new partners. Strengthening the governance mechanisms of enterprise organizations, third-party platforms, e-commerce associations, and the business credit environment can help alleviate the increase in these costs. Additionally, e-commerce not only helps enterprises in areas with high administrative barriers achieve cross-regional transactions, but also helps enterprises conduct transactions with high-administrative-barrier areas. This study reveals the internal mechanisms by which e-commerce affects enterprises’ interregional transactions and provides certain policy implications for deepening the role of e-commerce in supporting the construction of a unified national market.