Abstract

This study examines competitive advantages and economic effects brought by clustered-based e-commerce inChina through analyzing a case of Junpu Taobao Village, a small village where a critical mass of online vendorsis concentrated. Backed by the Diamond Model and other cluster theories proposed by Michael E. Porter, thispaper finds positive, large, and statistically significant clustering effects in this Taobao Village. These effectsgenerated by online vendor agglomeration shed lights on the sustainable development of E-commerce in China.

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