E-commerce and GDP nexus: Evidence across economic and continental groups

Information and Communication Technology (ICT) is currently developing rapidly along with its increasingly important role for both individuals and organizations. One form of ICT development is E-Commerce which serves as a comprehensive virtual marketplace. Based on macroeconomics context, the role of E-Commerce needs to be explored further, especially the relationship between Business to Consumer (B2C) E-Commerce and Gross Domestic Product (GDP), a topic that remains underexplored. The purpose of this study is to observe the nexus between B2C E-Commerce and GDP using two main classifications, namely: 1) economic status and 2) geographical continent. A panel-data regression analysis was conducted involving 117 countries from 2016 to 2020. The results showed that B2C E-Commerce had a positive and significant effect on GDP. In addition, the increase in e-commerce has been found to have the potential for nation growth in both developing and emerging economies. Notably, Africa and Asia-Oceania continents presented considerable opportunities to harness E-Commerce as a driver of national economic development. These findings provide important managerial and policy implications for governments and stakeholders in defining strategies to promote inclusive digital economic growth.