Does cross-border e-commerce improve China’s imported product quality? – A quasi-natural experiment based on the establishment of cross-border e-commerce comprehensive pilot zones

Abstract

We take the establishment of cross-border e-commerce comprehensive pilot zones as the quasi-natural experiment, based on China’s General Administration of Customs Database, China Customs Online Inquiry Platform, ‘Cross-Border E-Commerce Retail Import Commodity List’ and other data. By employing the staggered DID method, this paper systematically investigates the potential of cross-border e-commerce to enhance the quality of imported products. The research findings reveal the following: Since the introduction of the cross-border e-commerce comprehensive pilot zones, there has been a significant improvement in the quality of imported products in China. These effects, however, vary across different product types and regions, suggesting heterogeneous impacts. The cross-border e-commerce comprehensive pilot zones have facilitated the development of import trade in China through three main avenues: reducing search costs, resolving financing challenges, and lowering tariffs. These measures have collectively contributed to the reduction of trade costs.

KEYWORDS:

• Cross-border e-commerce
• imported product quality
• quasi-natural experiment

JEL CLASSIFICATIONS:

• F14
• L81

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 Online shopping bonded import model, which is currently the main mode adopted by CBEC import businesses. Under this model, the e-commerce platform purchases many commodities from abroad based on market forecasts and consumer needs. These products are then imported and stored in special customs supervision areas in China. Finally, the products are delivered to customers in the form of personal items based on the order, bypassing the international shipping line, and reducing delivery time

2 This has made cross-border product returns more convenient for consumers. For CBEC companies, imported goods can complete the return process without leaving the bonded area, which enables rapid secondary sales online

Additional information

Funding

This work was supported by National Social Science Fund of China [grant number 23&ZD084]; and National Natural Science Foundation of China [grant number 72273125].