Digital Economy Impact on E-Commerce and Consumer Behaviour in Iraq

Abstract

The swift evolution of the digital economy has rewritten global business models, especially in e-commerce, altering consumer buying behaviors. In Iraq, internet expansion, mobile technology, and digital payment solutions have opened up opportunities for online commerce. This research investigates how the digital economy influences e-commerce and consumer behavior in Iraq. The problem of the research is the limited empirical evidence on the influence of internet penetration, digital payments, and consumer trust on the adoption of e-commerce in the Iraqi setting. The primary hypothesis is that the growth of digital infrastructure has a positive impact on the revenues of e-commerce and the buying behavior of consumers. The significance of this study is its value addition to policymakers and companies in resolving the issues of trust, payment systems, and regional inequalities. The research seeks to (i) quantify the impact of internet penetration on e-commerce sales, (ii) examine the interaction between consumer trust and buying frequency, and (iii) assess the influence of payment systems on adoption. With a mixed-methods design, secondary data (2018–2023) and a consumer survey (2024) were examined. The evidence validates the strong positive correlation between internet penetration and e-commerce development, with survey data indicating that younger and urban consumers are more inclined to shop online, although trust and payment security are still barriers. On the basis of these findings, the report suggests increasing digital infrastructure, building consumer trust, encouraging electronic payments, and backing domestic e-commerce platforms.