TY - JOUR
T1 - E-commerce, productivity, and fluctuation
AU - Wen, Mei
PY - 2004/10
Y1 - 2004/10
N2 - This paper studies simultaneous adoption of e-commerce and its impact on productivity and economic structure in a general equilibrium model. It is found that the lower the fixed cost for establishing and maintaining e-commerce and/or the higher the degree of improvement in unit transaction efficiency through e-commerce, the more likely it is that producers will adopt e-commerce. In addition, the adoption of e-commerce can increase productivity and trade dependency, due to the benefits of fixed-cost sharing over a higher trade level and economies of specialization in production. Reduction in unit transaction cost through e-commerce can also increase the level of division of labor and promote structural changes in the economy. However, as the development of the IT sector may reduce fixed cost for e-commerce while improving unit transaction efficiency, further developments of the IT sector can generate fluctuations in economic structure and productivity through e-commerce.
AB - This paper studies simultaneous adoption of e-commerce and its impact on productivity and economic structure in a general equilibrium model. It is found that the lower the fixed cost for establishing and maintaining e-commerce and/or the higher the degree of improvement in unit transaction efficiency through e-commerce, the more likely it is that producers will adopt e-commerce. In addition, the adoption of e-commerce can increase productivity and trade dependency, due to the benefits of fixed-cost sharing over a higher trade level and economies of specialization in production. Reduction in unit transaction cost through e-commerce can also increase the level of division of labor and promote structural changes in the economy. However, as the development of the IT sector may reduce fixed cost for e-commerce while improving unit transaction efficiency, further developments of the IT sector can generate fluctuations in economic structure and productivity through e-commerce.
KW - Economic structure
KW - Economies of specialization
KW - Information technology
KW - Transaction efficiency
UR - http://www.scopus.com/inward/record.url?scp=4544361825&partnerID=8YFLogxK
U2 - 10.1016/j.jebo.2003.10.002
DO - 10.1016/j.jebo.2003.10.002
M3 - Article
SN - 0167-2681
VL - 55
SP - 187
EP - 206
JO - Journal of Economic Behavior and Organization
JF - Journal of Economic Behavior and Organization
IS - 2
ER -