E-commerce adaptation of provinces in Türkiye and the credit channel

Abstract

This study examines the loan market and supply-demand dynamics affecting e-commerce adaptation  in Türkiye based on the newly established E-Commerce Adaptation   Index by the Ministry of Trade. Using data from 81 provinces, econometric analyses reveal that individual credit volume has a strong and significant positive effect on e-commerce adaptation. Additionally, sectoral loans also support e-commerce compliance, although its impact is more limited compared to individual credit. These findings highlight the critical role of loan supply and demand in the diffusion and adaptation of digital commerce. The results suggest that effective management of the credit market and expanding access to finance are strategically important for enhancing Türkiye’s competitiveness in the digital economy.