Consumer Mobility, Offline and Online Regional Trade: Evidence From High-Frequency Transaction Data

David Bounie; Youssouf Camara; John W. Galbraith

doi:10.1111/iere.70036

Consumer Mobility, Offline and Online Regional Trade: Evidence From High-Frequency Transaction Data

David Bounie
, Youssouf Camara
, John W. Galbraith

McGill University

Research output: Contribution to journal › Article › peer-review

Abstract

The shift from offline to online purchasing is reshaping trade patterns: a weaker effect of distance has been observed in digital transactions. This study analyzes these dynamics at an unprecedented scale and granularity, using interregional gravity models estimated from billions of geolocated French card transactions. Using a matched sample of merchants active in both online and offline channels, with unambiguous regional identification, we compare purchasing behavior across channels. We estimate that distance matters 35% less online than offline on average, but for durables, 69% lower online; 43% lower online for nondurables; a negligible online–offline difference is found for services.

Original language	English
Journal	International Economic Review
DOIs	https://doi.org/10.1111/iere.70036
Publication status	Accepted/In press - 1 Jan 2025

Keywords

consumer mobility
consumption expenditure
distance effect
e-commerce
gravity model
interregional retail trade
regional economic activity
transaction data

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10.1111/iere.70036

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title = "Consumer Mobility, Offline and Online Regional Trade: Evidence From High-Frequency Transaction Data",

abstract = "The shift from offline to online purchasing is reshaping trade patterns: a weaker effect of distance has been observed in digital transactions. This study analyzes these dynamics at an unprecedented scale and granularity, using interregional gravity models estimated from billions of geolocated French card transactions. Using a matched sample of merchants active in both online and offline channels, with unambiguous regional identification, we compare purchasing behavior across channels. We estimate that distance matters 35\% less online than offline on average, but for durables, 69\% lower online; 43\% lower online for nondurables; a negligible online–offline difference is found for services.",

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AU - Camara, Youssouf

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AB - The shift from offline to online purchasing is reshaping trade patterns: a weaker effect of distance has been observed in digital transactions. This study analyzes these dynamics at an unprecedented scale and granularity, using interregional gravity models estimated from billions of geolocated French card transactions. Using a matched sample of merchants active in both online and offline channels, with unambiguous regional identification, we compare purchasing behavior across channels. We estimate that distance matters 35% less online than offline on average, but for durables, 69% lower online; 43% lower online for nondurables; a negligible online–offline difference is found for services.

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KW - consumption expenditure

KW - distance effect

KW - e-commerce

KW - gravity model

KW - interregional retail trade

KW - regional economic activity

KW - transaction data

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SN - 0020-6598

JO - International Economic Review

JF - International Economic Review

ER -

Consumer Mobility, Offline and Online Regional Trade: Evidence From High-Frequency Transaction Data

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Keywords

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