The Econometric Analysis of the Relationship between Chinese e-Commerce Transactions and GDP

This paper analyzes the impact of the development of e-commerce on China’s economic growth from an empirical perspective. By using co integration, error correction model and Granger causality test on the two time-series in econometric way with the e-commerce transactions and GDP data from 1998 to 2005, it shows the amount of e-commerce transactions promotes economic development and there are long-term equilibrium and short-term dynamic relationship between them as a conclusion. The paper gives a basis for understanding the extent of e-commerce development, analyzing the problems in the process of development, formulating appropriate e-commerce development strategy and gives some suggestions.