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Does cross-border e-commerce development promote the improvement of residents' income level? Evidence from China

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  • Cai, Lifeng
  • Du, Qunyang
  • Bao, Liner
  • Boateng, Agyenim
  • Li, Zhongyuan

Abstract

Cross-border e-commerce is an important driver of regional economic growth. This article evaluates the impact of the development of cross-border e-commerce commerce on residents' income based on panel data from 300 Chinese cities over the period 2002–2023 in China, using the establishment of a comprehensive cross-border e-commerce pilot zone as a quasi-natural experiment. By employing a difference-in-differences (DID) model, this study examines the impact of these pilot zones on residents’ income levels. The findings reveal that the establishment of cross-border e-commerce pilot zones significantly enhances residents’ income levels, and this conclusion remains robust across various tests. Mechanism analysis further indicate that these zones contribute to income growth through three primary channels: exports, industrial development, and employment. Heterogeneity analysis indicates that the impact of cross-border e-commerce comprehensive pilot zone on residents’ income levels varies by city size and region. Specifically, these zones have a more significant effect on income levels in small cities. Regionally, the impact is particularly pronounced in the eastern region, moderately reduced in the central region, and negligible in the western region. These findings offer a theoretical foundation for promoting the income level of residents through the development of cross-border e-commerce.

Suggested Citation

  • Cai, Lifeng & Du, Qunyang & Bao, Liner & Boateng, Agyenim & Li, Zhongyuan, 2025. "Does cross-border e-commerce development promote the improvement of residents' income level? Evidence from China," Research in International Business and Finance, Elsevier, vol. 77(PA).
    • Handle: RePEc:eee:riibaf:v:77:y:2025:i:pa:s0275531925001631
    DOI: 10.1016/j.ribaf.2025.102907
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