The effects of government licensing on e-commerce : evidence from Alibaba / by Ginger Zhe Jin, Zhentong Lu, Xiaolu Zhou, Chunxiao Li. : FB3-5/2021-32E-PDF

"Using proprietary data from Alibaba, we examine how the 2015 Food Safety Law (FSL) affects e-commerce in China. The FSL requires most food sellers on e-commerce platforms to obtain a valid online license for retail food handling. Because the FSL was rolled out progressively, we have a rare opportunity to observe a gradual transition from voluntary certification to partial licensing and mandatory licensing. Data summary shows that, conditional on sellers with valid licensing information, those that had a better online reputation and more online food sales before the FSL tend to display their FSL license earlier on the platform, and buyers are more willing to transact with a seller after she displays her FSL license"--Abstract, page ii.

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