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This study examines the causal relationship between the Internet and economic factors in Asian economies between 1997 and 2017. The economic factors consist of gross domestic product (GDP), foreign direct investment (FDI), imports, and exports. A comparative analysis of East, South, and Western Asia was conducted using a panel vector autoregressive model. The findings show bidirectional causality between FDI and Internet use in South Asia, unidirectional causality from Internet use to FDI in East Asia, and unidirectional causality from FDI to Internet use in Western Asia. Moreover, the findings indicate unidirectional causality from exports to Internet use in East Asia and unidirectional causality from Internet use to exports in South Asia, but no impact in Western Asia. Finally, the results show unidirectional causality from Internet use to GDP in Western Asia. As these results suggest that Internet use has boosted economic performance in Asia, policy makers in the region should improve Internet use with a focus on economic growth, improving transaction efficiency, and facilitating foreign investment.

PurposeA wide urban–rural income gap exists in China despite the implementation of pro-rural policies. Additionally, with the proliferation of the internet and information technology, the promotion effect of e-commerce on the economy has become apparent. Accordingly, China has been actively encouraging rural households to participate in e-commerce activities. This study aims to examine the effect of e-commerce on the urban–rural income gap.Design/methodology/approachIn the study, linear and panel threshold models were applied to provincial-level panel data from 2002 to 2018.FindingsThe results of the linear model show that e-commerce contributes to narrowing the urban–rural income gap. Moreover, the panel threshold model results show that the narrowing effect exists in regions where the e-commerce intensity is at a medium-to-high level and urbanization is at a relatively low level; otherwise, e-commerce has no effect. In addition, in regions with a relatively high level of public expenditure and education, the income-gap-narrowing effect of e-commerce is more than double.Practical implicationsThe urban–rural income gap can be reduced by promoting e-commerce and reducing the urban–rural divide in e-commerce use.Originality/valueTo determine how varying levels of e-commerce development affect the urban–rural income gap across regions, the study proposes four key causes of the digital divide in e-commerce: e-commerce intensity, public expenditure level, urbanization level and education level and applies the variables as threshold variables to examine the non-linear effect of e-commerce on the income gap.

This study examines the effects of China’s cross-border e-commerce (CBEC) on its goods and services exports to ‘Belt and Road’ (B&R) countries for the period 2000–2018 using a gravity model. We find that CBEC has a greater positive impact on trade in services than on trade in goods, especially after the implementation of the B&R initiative. Furthermore, as the level of CBEC rises, distance tends to have a lower (higher) impact on services (goods) trade, whereas the impact on services (goods) trade increased (decreased) annually. Hence, promoting the sustainable development of CBEC can lead to increased export volumes.

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