Econometric Analysis of the Relationship between Indian E-Commerce Transaction and GDP

By : Bhawna Johri

Page No: 319-326

Abstract
Purpose/originality/value: This study is an attempt to examine the impact of growing e-commerce transaction on Indian economic growth from 2006 to 2013. Design/methodology/approach: Annually data have been taken to test the stationarity of two variables (e-commerce sales and Gross Domestic Production [GDP]) by using Augmented Dickey Fuller (ADF) unit root and cointegration test and also applies the ordinary least square method to analysis the impact of increasing e-commerce sales on the economic growth of India.
Findings: The study reveals the absence of stationarity in selected variables and t-Statistic indicates that e-commerce has a significant positive impact on GDP during the study period. Research limitations/implications: This study is limited to GDP as an indicator of economic growth. Therefore, such study which includes more numbers of economic indicators would be appropriated to replicate the results of this study.
Practical implications: For improving the economic growth of the Indian economy, it’s necessary to increase the volume of ecommerce sales by using existing resources, which will lead to increase in technological comprehension and a move towards being a developed country.

Author :
Bhawna Johri : Assistant Professor, Applied Business Economics, Faculty of Commerce, Dayal Bagh Education Institute (Deemed University), Dayalbagh, Agra