Factors affecting Per Capita Digital Commerce (PCDC)

Factors affecting Per Capita Digital Commerce (PCDC)
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Factors affecting Per Capita Digital Commerce (PCDC)
Digital commerce refers to the buying and selling products through digital platforms like mobile networks, the internet, and commerce infrastructure. Examples include online selling and buying, media purchases like iTunes, and online selling and buying virtual games. Digital commerce has gained popularity in recent decades due to several factors that include advancement in internet broadband technology, the existence and enforcement of data protection policies and Privacy Laws, and the score on the Logistics Performance Index (LPI).
The internet is the primary mediator between buyers and sellers in digital commerce. Broadband on the internet refers to transmitting high-quality data of a wide bandwidth that includes Wi-Fi, satellites, and fiber. Having fast internet is a motivation for a customer or a consumer to invest in digital commerce. An article by Chong Jinn Xuan (2016) discusses how slow internet speed has derailed the Malaysian digital economy. The global internet average speed is 23Mbps, but Malaysia's broadband speed is 7.3Mbps, as shown by the World Economic Forum figures (Dutta et al., 2015). Malaysia has reached 70% fiber internet connectivity (Xuan, 2016), but the 7.3Mbps does not make the connectivity worth it. The Malaysians have slower internet connectivity that prevents them from relying on digital commerce, which depends on faster connectivity. The economy in Malaysia may continue derailing due to the slow internet because it discourages people from engaging in digital commerce. Xuan (2016) concludes that internet broadband speed is crucial in promoting digital commerce.
Digital commerce collects and uses customers' information for operations. Data privacy in digital commerce refers to the privacy protection of the parties involved in digital transactions. People disclose their information whenever transacting online, and the transaction platforms store these data in the form of web bugs and cookies. It is crucial to protect these data because malicious parties can use them to harm the customers. These data are often collected passively or actively. Sites that use cookies do not allow a person to access them unless they permit the site to collect them. Sites partner with advertising agents who access the data from the customer's browser and use it to customize ads (Bilstad et al., n.d). This raises concerns because it shows that other unauthorized parties can access the data and use it maliciously.
However, the Electronic Communications Privacy Act (ECPA) enforcement criminalizes intentional interception, disclosure, and use of digital communication that impacts either or both interstate and foreign commerce (Bilstad et al., n.d). This may not apply to parties that obtain the user's consent to access the data, which sometimes is not well defined. Wolfgang Kerber (2016) analyzed privacy concerns in the digital economy from an economist's point of view. The study assessed consumer law, data protection and privacy laws, and competition laws. The results showed that increased enforcement of data protection and privacy laws has led boosted the digital markets.
The commerce sector heavily depends on facilitation, referred to as logistics. The trade facilitation ensures trading activities run smoothly through effective custom administrations for international trade, appropriate telecommunications, competent logistics, and quality infrastructure. Facilitating trade improves economic development, lowers trade development costs, thus guaranteeing economic benefits for emerging economies. Highly developed and efficient logistics services guarantee product safety, movement, and delivery speed (La & Song, 2019). It also reduces trade costs. The state of logistics services reflects the score on the Logistics Performance Index (LPI). Therefore, a high score on LPI means good logistics services are likely to boost digital commerce because customers get the goods in good conditions and in good time.
Based on the above literature, this project aims to test whether average broadband speed, Logistics Performance Index (LPI), and the existence of Data Protection and Privacy Laws affect Per Capita Digital Commerce (PCDC).
Hypothesis Development
A hypothesis is a precise assumption, explanation, idea, or a statement of expectation or prediction that a researcher seeks to test. Hypotheses often begin with research questions which are then investigated through background research. The following research questions were used to develop the hypothesis.
Research Questions
* Does Average broadband speed Affect Per Capita Digital Commerce (PCDC)?
* How does Logistics Performance Index (LPI) affect Per Capita Digital Commerce (PCDC)?
* Does the existence of Data Protection and Privacy Laws affect Per Capita Digital Commerce (PCDC)?
Research Hypotheses
The following three hypotheses were formulated from the above research questi...