Influencing Factors of Cross Border E-commerce in Korea

In Cross Border E-Commerce, influence of distance between buyer and seller which used to be a critical obstacle for the trade could diminish by saving transaction and information costs. This paper empirically investigates the distance effect and other influencing factors of CBEC trade between Korea and 59 countries by the OLS, fixed effect, and random effect estimation. Our main findings can be summarized as follows: geographical distance still remained as an obstacle to the CBEC trade, Broadband subscription and USA country dummy variables positively affect CBEC trade of Korea. As there are rare empirical studies based on official CBEC trade data, our results would be meaningful to grasp the different characteristics of CBEC trade.