E-Commerce, Exports and Imports Growth: Casual Relations Between Us and China

Abstract

The main aim of this paper is to do empirical analysis of the causal links between growth in e-commerce, exports and imports in US and China.  The decision to select these countries is based on their performance of E-commerce and International Trade over the decade in the world. The case whereby the causal links between the e-commerce, exports and imports sector of a nation can be discovered and analyzed. The causality concept used in this research is VAR Granger causality/Block Exogeneity Wald Test. There exists solid indication of Granger causality, bidirectional association between E-commerce, Exports and Imports growth for US in our sample. There is a weaker evidence of existence of causality between the variables in the case of China.  The phenomenon of e-commerce entails important opportunities for improving the international integration and therefore all countries can also profit from policies that promote strategic sectors of their markets.

Keywords: E-Commerce, Exports, Imports, Causal Relations