Disaggregating the Impact of the Internet on International Trade
The Internet has transformed the way countries trade by reducing the costs of exporting. This paper quantifies the impact of Internet adoption on international trade. It shows that the Internet has a positive, nuanced, impact on international trade...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/08/26671672/disaggregating-impact-internet-international-trade http://hdl.handle.net/10986/24866 |
| Summary: | The Internet has transformed the way
countries trade by reducing the costs of exporting. This
paper quantifies the impact of Internet adoption on
international trade. It shows that the Internet has a
positive, nuanced, impact on international trade: bilateral
exports are more affected when Internet adoption increases
in the exporter than importer. A 10 percent increase in the
exporter's Internet adoption leads to a 1.9 percent
increase in bilateral exports, largely explained by an
increase in the number of goods exported. A 10 percent
increase in the importer's Internet adoption leads to a
0.6 percent increase in bilateral exports, explained by an
increase in the average value of existing exported goods.
The analysis also finds that when both countries have high
levels of Internet adoption they are more likely to trade
with each other, compared with country pairs with different
(high and low) or low levels of Internet adoption. |
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