Economic Development in the United States of America (Us): The Emerging Role of E-Commerce

https://doi.org/10.55966/assaj.2025.4.1.0116

Abstract

This article attempts to critically examine the multifaceted role of electronic commerce (e-commerce) in shaping the economic trajectory of the United States (U.S). The study particularly focuses on the period from 2000 to 2024. The study is grounded in ‘endogenous growth theory’, ‘structural transformation frameworks’, and ‘innovation diffusion models’. The mixed-methods approach allows the study to integrate longitudinal federal data, firm-level financial records, econometric modeling, and stakeholder interviews. The study’s findings reveals that e-commerce contributes significantly to GDP growth (0.05 pp increase per 1% sales share rise), accounting for 18% of aggregate productivity gains (2010–2022). In the context COVID-19 pandemic in particular accelerated this trend. The e-commerce penetration surged from 11.3% (Q1 2020) to 16.1% (Q4 2021). It reportedly generated $1.2B in California tax revenue that offset brick-and-mortar losses. However, benefits are unevenly distributed: a) sectoral reallocation shifted labor from traditional retail (−9% market share) toward logistics (+172% employment) and digital services (12% CAGR); b) intensifying job polarization; and c) spatial inequalities where urban counties capture 78% of revenues versus rural areas (12%). The adaptation rates have been modest in respect of the minority-owned enterprises (18% for Black-owned and 21% for Hispanic-owned firms). However, these groups remain marginalized within the e-commerce landscape. Acute market concentration (top 5 platforms: 72% share; Amazon: 38%) enables rent extraction and labor precarity ("digital Taylorism"). The environmental externalities include: 37% reported surge in packaging waste (2015–2023) and emission of 4.5 million metric tons of CO₂ annually from returns. The study’s policy recommendations target digital equity (broadband subsidies, SME platforms), antitrust modernization (data regulation), labor protections (portable benefits), and sustainability (eco-packaging mandates). The study concludes that unlocking the true potential of e-commerce’s development would require institutional complementarities to balance efficiency with equity.

Keywords: E-Commerce, Economic Development, Structural Transformation, COVID-19, Digital Inequality