Research the Impact of E-commerce on China's Economy

Abstract

E-commerce has evolved as a generation of technology that provides consumers and industries with the belief to process transactions. While China has gone through a period of pandemic, China's GDP in e-commerce has been growing steadily. In the forecasting model, there is an upward trend in the top five industries in China. And the larger percentage of wholesale and retail industries represents their importance in the future. Therefore, this paper will investigate the impact of e-commerce on China's economy by building two linear regression models. In building the linear regression models to find the relationship, different control variables are selected from various aspects, such as labor force, natural population growth rate, number of employed people and the proportion of enterprises with e-commerce transaction activities, to study their effects on the relationship between e-commerce and China's GDP. Through the research analysis, it is found that e-commerce has a significant positive impact on the Chinese economy, and securing the per capita disposable income of the population helps to promote the development of e-commerce, thus better promoting China's economic development for the better. Finally, this paper gives suggestions from both enterprise and government levels. Enterprises should develop suitable business strategies to meet consumers needs better. On the one hand, the government should encourage residents to consume while protecting consumers' rights and interests. On the other hand, the government should encourage enterprises to innovate and make appropriate policies to help them develop better.