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Research Article Open Access

FACTORS AFFECTING E-COMMERCE POTENTIAL OF ANY COUNTRY USING MULTIPLE REGRESSION ANALYSIS

Abstract

The advancement of Information Technology and Telecommunication has opened new avenues for business. These astonishing developments have led to rapid diffusion of e-commerce which is gaining popularity around the globe and it is contributing to the economic growth of country. This study aims to develop an integrative model based on different factors which can affect the growth of ecommerce in any country. For this purpose, data of 145 countries for year 2014 was obtained from different sources. Nine different Multiple Regression Models were proposed by combination of different factors in order to analysis their relative effect on growth of e-commerce. Result of the study show that the sensitivity of the ecommerce potential was highest for GNI per Capita and Readiness Sub-Index respectively. Similarly, other factors such as education level, urbanization and social media user were also found significantly associated with e-commerce potential. However, Cyber Security and Business Prospects were found to be statistically insignificant in few of the models. The paper concludes with few suggestions for government and policy makers to increase e-commerce growth in the country.

ANSAR WASEEM, YASIR RASHID, MUHAMMAD AKIB WARRAICH, IMRAN SADIQ, ZEESHAN SHAUKAT

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