A review of Turava Sofiko on article ‘Impact of the Electronic Payment Environment of the Importing Country on China’s Export Trade’ by Mingjun Wang, 5th International Conference on Economics, Management, Law and Education (EMLE 2019)
This article analyzes panel data from five ASEAN countries from 1999 to 2017 to test empirically the stimulating impact of the country's e-payment environment on China's export trade. The author also provides relevant proposals for Chinese e-commerce enterprises to enter the e-commerce market of Southeast Asia.
In the introduction, the author emphasizes the electronic payments importance as an important part of the consumer economy of the Internet. The article provides the following definition of an electronic payment - an action that occurs between a buyer and a seller and completes the exchange of funds through the network interaction of electronic products, usually supported by a specialized payment system as a technical environment.
When constructing the model, the author focuses on previous studies of the impact of the electronic payment environment on export trade. As international trade became more frequent and deep under the WTO system, and many foreign consumers became dependent on Chinese products, their demand for export trade increased. Therefore, this article uses the following variables to express the impact. Factors of export trade are the environment of electronic payments, GDP per capita and the question of whether a country is a WTO member. Multiple linear regression models are used to express the mechanism of action of independent variables on interpreted variables.
In conclusion, the author concludes that the level of cash payments, per capita income and the environment of electronic payments in importing countries have a significant impact on China's export trade. Moreover, in the structure of China's export commodity trade to the ASEAN countries, wholesale commodity transactions based on traditional payment methods still occupy a dominant position. Thus, the impact of e-payment levels on the volume of export trade is weaker than that of traditional payment methods. Also, the higher the degree economic development, the better the electronic payment environment, and the less the promotion of China's export trade.
As recommendations for Chinese companies when entering the e-commerce market, author primarily highlights the importance of taking into account the insufficient development of infrastructure, the insufficient number of practitioners in the field of e-commerce and the low level of penetration of online payments in many countries of Southeast Asia. According to the article study results, there are two main ways for Chinese enterprises to enter the Southeast Asian region. First, in countries like Singapore, where the e-commerce and e-payment industry is most developed, they use
their ready and relatively complete resources to develop their own foreign brands and choose local payment methods to pay. This environment is suitable for e-commerce sellers who are focused on creating unique brands to maintain customers and increase customer loyalty.
For countries, such as Thailand, Indonesia, where the development of e-commerce is still at an early development stage, the government provides strong support to developing industries such as e-commerce and e-payment. So qualified Chinese companies can consider investing in a well-known local e-commerce platform and payment companies, and share the excellent experience of developing the domestic e-commerce industry in China.
Source: Wang M. Impact of the Electronic Payment Environment of the Importing Country on China’s Export Trade: Based on Panel Data of the Five ASEAN Countries //5th International Conference on Economics, Management, Law and Education (EMLE 2019). – Atlantis Press, 2020. – pp. 262-269.
Published by Atlantis Press
URL: https://www.atlantis-press.com/proceedings/emle-19/125931430