Do ecommerce firms perform better than non-ecommerce firms in Korea?
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This paper describes and tests performance differences between ecommerce and non-ecommerce firms or establishments by using the 2010 Census for Korea. Although the number of ecommerce establishments makes up a small fraction of the economy, ecommerce establishments have a disproportionate weight in sales, employment, and wage. The paper finds that in manufacture ecommerce establishments have, on average, larger sales-per-worker and pay higher wage whereas in services ecommerce ones have higher sales-per- worker but pay no larger wage than their counterparts of a similar age and size in the same industry. It also adds quantile estimates showing that sales- per-worker differences between ecommerce and non-ecommerce establishments in manufacture are positive and statistically significant only at lower quantiles of the distribution. In services, sales-per-worker differences between them are positive and significant at most of distribution but turns to be negative, though not significant, at above upper quantile of the distribution.
Abstract
This paper describes and tests performance differences between ecommerce and non-ecommerce firms or establishments by using the 2010 Census for Korea. Although the number of ecommerce establishments makes up a small fraction of the economy, ecommerce establishments have a disproportionate weight in sales, employment, and wage. The paper finds that in manufacture ecommerce establishments have, on average, larger sales-per-worker and pay higher wage whereas in services ecommerce ones have higher sales-per- worker but pay no larger wage than their counterparts of a similar age and size in the same industry. It also adds quantile estimates showing that sales- per-worker differences between ecommerce and non-ecommerce establishments in manufacture are positive and statistically significant only at lower quantiles of the distribution. In services, sales-per-worker differences between them are positive and significant at most of distribution but turns to be negative, though not significant, at above upper quantile of the distribution.
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