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Explaining Online Purchases In The European Union: A Country-Level Perspective

Author

Listed:
  • CEPOI, Cosmin-Octavian
  • CIUMARA, Tudor

    (Centre for Financial and Monetary Research “Victor Slavescu†, N.I.E.R., Romanian Academy, Bucharest, Romania
    Centre for Financial and Monetary Research “Victor Slavescu†, N.I.E.R., Romanian Academy, Bucharest, Romania)

Abstract

This paper investigates the determinants of online purchases in the European Union using annual country-level data for 2020–2023. We focus on macroeconomic (GDP per capita, inflation, consumption share), institutional (regulatory quality), technological (internet penetration, broadband subscriptions), and demographic (share of population aged 65+) factors. Our estimates shows that income, regulatory quality, and internet use are strongly and positively associated with online shopping, while consumption share is negatively related. Inflation exerts a modest positive effect, and ageing unexpectedly supports digital uptake. The findings highlight that online purchases depend not only on technology but also on income, institutions, and demographics. We bring an EU-wide update for 2020–2023 and show which country-level factors move with online buying. We also flag a measurement gap: fixed lines are a weak stand-in for day-to-day retail connectivity, so future work should add mobile metrics (4G/5G coverage, typical downlink, data affordability).

Suggested Citation

  • CEPOI, Cosmin-Octavian & CIUMARA, Tudor, 2025. "Explaining Online Purchases In The European Union: A Country-Level Perspective," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 13(1), pages 184-190, October.
    • Handle: RePEc:vls:rojfme:v:13:y:2025:i:1:p:184-190
    DOI: https://doi.org/10.65672/jfme.2025.1.17
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    References listed on IDEAS

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    4. Elżbieta Roszko-Wójtowicz & Gagan Deep Sharma & Barbara Dańska-Borsiak & Maria M. Grzelak, 2024. "Innovation-Driven E-Commerce Growth in the EU: An Empirical Study of the Propensity for Online Purchases and Sustainable Consumption," Sustainability, MDPI, vol. 16(4), pages 1-25, February.
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    More about this item

    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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