The Main Drivers of E-Commerce Adoption: A Global Panel Data Analysis

Digitalization has become more and more important for economic activities and economic development. E-commerce, as a part of local and international trade, is of increasing importance and is highly correlated with technological progress and innovation. Our research investigates the relevance of selected drivers that could explain the latest e-commerce adoption at global level. In our analysis, we used the UNCTAD B2C E-commerce Index (2014–2020, yearly data, covering 133 countries, 931 observations) which can be considered relevant to express an economy’s readiness to support e-commerce. E-commerce adoption is assessed in our research by the following six factors: (i) wealth, economic freedom, and economic development; (ii) access and sophistication of the financial sector; (iii) education; (iv) regulations; (v) development of ICT infrastructure; and (vi) frontier drivers (such as AI, cryptocurrencies, and blockchain technologies). In our research, we used a panel data analysis framework using hard data provided by different databases (UNCTAD, World Bank, etc.). The results we obtained confirmed that developed countries with a higher income level are higher adopters of e-commerce, financial development and the accessibility of financial services significantly help e-commerce adoption, a regulatory system (particularly economic freedom and property rights) strongly supports e-commerce adoption, education has a positive impact on e-commerce adoption, ICT infrastructure increases the adoption of e-commerce and the readiness and use of AI, and frontier technologies generate an increased adoption of e-commerce. The results we obtained are consistent with the findings of similar studies (most of them using different research methodologies) and opens the ground for interesting discussions and further research developments. The novelty of our research consists in the exhaustive perspective on e-commerce adoption drivers (including frontier technologies such as AI or blockchain) based on hard country data collected from various sources for a consistent panel of countries and a relevant number of years, providing an alternative approach to the mainstream studies on e-commerce adoption that process data from surveys, interviews, or focus groups.