The Impact of E-Commerce on the Economic Growth of the Western Balkan Countries: A Panel Data Analysis

Abstract

Today, economic development cannot be thought of without including innovation. Innovation is a promoter of economic growth. Since e-commerce is considered an innovation, it can be a driver of economic growth in some economic environments. This study investigates the impact of e-commerce through electronic transactions on economic growth in the Western Balkans during the period 2008 to 2020. The study applies the quantitative methodology using secondary data. This study uses panel data techniques, starting with estimators pooled OLS, fixed effects, random effects, and Hausman Taylor -IV. The findings show that e-commerce does not contribute to economic growth in the Western Balkan countries for the study period. Furthermore, this study shows that final consumption, exports, and foreign direct investment positively impact economic growth. The study also confirmed that the increased government expenditure does not contribute to economic growth in the Western Balkan countries. The study brings theoretical implications by bringing scientific evidence on the impact of ecommerce on economic growth in the western Balkan countries. The study provides an insight into the impact of e-commerce on the economies of the Western Balkan countries, which are developing countries, and paves the way for other studies in developing countries to look at the similarities and differences.

Developing an Information Model for E-Commerce Platforms: A Study on Modern Socio-Economic Systems in the Context of Global Digitalization and Legal Compliance

“…As part of the discussion of the study, consideration should be given to comparing our study results with similar ones. Most scientists have formed a number of directions for the further development of state policy in the field of digital transformations [11,12], namely: the introduction of initiatives for the digitalization of public institutions, taking into account such technological concepts as multi-channel informing and engaging citizens, Open Data, the Internet of things, digital government platforms, blockchain; integration into international agreements and initiatives to regulate the digitalization of the global economy; development of digital payment systems and the spread of cashless payments; the introduction of digital technologies in secondary education should be of a multi-platform cross-cutting nature; development and implementation of a comprehensive educational program for the acquisition of digital competencies and skills; development of digital infrastructure; development and implementation of the Industry 4.0 development program, improvement of the legislative regulation of electronic commerce in terms of liability of sellers for dishonest actions [13][14][15].…”

Returned Entrepreneurs and Ability to Generate Innovations: Case of Kosovo

“…Studies emphasize the importance of innovation in economic growth. For example, Toska and Fetai [81] conclude that innovation can generate economic growth for countries. Then, Pece et al [82] argues that innovation is important for the country's economy in general.…”

“…The innovations were mainly: new products/services, new work methods, new production methods, and new sales methods, applying online sales and virtual stores, as well as the application of new technologies thanks to the experience gained abroad [64]. We can also conclude that creating innovations can have political implications due to the fact that innovation can be considered a source of economic growth for countries, which is a challenge for many economies and governments [81].…”

Formation of an Innovative Model for the Development of E-Commerce as Part of Ensuring Business Economic Security

“…Alazzam (2020a), Toska andFetai (2023), andAwa et al (2015) note in the literature that the range of ecommerce operations is wider than the totality of the stages of a direct sale and purchase agreement. The list of the main areas of e-commerce includes not only digital trade transactions, but also the preparation of electronic infrastructure, online market analysis, marketing activities in the electronic network, maintaining relationships with suppliers and consumers, and organizing electronic document management.…”