Drivers and barriers to cross-border e-commerce: Evidence from Spanish individual behavior

Abstract

This paper explores the determinants of the individual's decision to perform cross-border ecommerce (CBeC). The European Union (EU) is especially interested in the promotion of CBeC because it is an important tool in its strategy to achieve the Digital Single Market in Europe. In this paper official data is used from a representative survey of 16,209 individuals on ICT usage by households and individuals that was carried out in Spain by the National Institute of Statistics (INE) for the year 2016. Using a standard neoclassical utility maximization framework, and logistic regression techniques, the results show that being a male is positively related to the probability of practicing CBeC. Education is positively and significantly related to the probability of being involved in CBeC with EU countries. Computer and Internet Skills are significant and positive factors in explaining CBeC (either with EU countries or with the rest of the world). The variable “how often the consumer sees other customer reviews before buying online”, has a positive effect. Foreign nationality also increases the likelihood of using CBeC. To promote CBeC in Spain measures towards developing digital skills, Internet trust and use of online information reviews of goods and services are discussed.