Decomposition and Measurement of Economic Effects of E-commerce Based on Static Feder Model and Improved Dynamic Feder Model

Abstract

This paper analyzes the long-term and short-term effects of e-commerce on economic growth through static Feder model and improved dynamic Feder model. At the theoretical level, this paper uses static Feder model to know that both direct and indirect effects of e-commerce affect economic growth in the long run. Among them, the spillover effect of e-commerce always promotes economic growth, and the impact of direct effect on economic growth depends on the difference of marginal productivity of input factors between e-commerce sector and non-e-commerce sector. Through the improved dynamic Feder model, we know that in the short term, the direct and spillover effects of e-commerce on economic growth are also related to the current influencing factors of e-commerce. Through empirical research, we find that in the long run, every 1% increase in e-commerce turnovers promotes economic growth by 0.780% and its spillover effect promotes economic growth by 0.608%. In the short term, every 1% increase of e-commerce turnovers will promote economic growth by 0.298% and its spillover effect will promote economic growth by 0.194%.