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From Street Stalls to Screens: The Price Integration of China’s Cities

Author

Listed:
  • Marina Glushenkova
  • Marios Zachariadis

Abstract

We investigate the extent to which the substantial decline in price dispersion across Chinese cities can be attributed to the emergence and expansion of e-commerce. We find that online trade exerted a strong negative effect on bilateral price differences across Chinese cities over time for the period from 2006 to 2021. Furthermore, we find that the impact of online trade on price integration was even more pronounced for cities located farther apart geographically. As a result of this mechanism, price dispersion declined significantly over the study period, reaching levels comparable to those observed among core euro-area economies by the end of the sample period.

Suggested Citation

  • Marina Glushenkova & Marios Zachariadis, 2026. "From Street Stalls to Screens: The Price Integration of China’s Cities," University of Cyprus Working Papers in Economics 02-2026, University of Cyprus Department of Economics.
    • Handle: RePEc:ucy:cypeua:02-2026
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    Keywords

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    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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