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...

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Main Authors:	Osnago, Alberto, Tan, Shawn W.
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	international trade internet communication technology extensive margins intensive margins
Online Access:	http://documents.worldbank.org/curated/en/2016/08/26671672/disaggregating-impact-internet-international-trade http://hdl.handle.net/10986/24866

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recordtype	oai_dc
spelling	okr-10986-248662021-04-23T14:04:28Z Disaggregating the Impact of the Internet on International Trade Osnago, Alberto Tan, Shawn W. international trade internet communication technology extensive margins intensive margins 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. 2016-08-10T16:15:59Z 2016-08-10T16:15:59Z 2016-08 Working Paper http://documents.worldbank.org/curated/en/2016/08/26671672/disaggregating-impact-internet-international-trade http://hdl.handle.net/10986/24866 English en_US Policy Research Working Paper;No. 7785 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	international trade internet communication technology extensive margins intensive margins
spellingShingle	international trade internet communication technology extensive margins intensive margins Osnago, Alberto Tan, Shawn W. Disaggregating the Impact of the Internet on International Trade
relation	Policy Research Working Paper;No. 7785
description	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.
format	Working Paper
author	Osnago, Alberto Tan, Shawn W.
author_facet	Osnago, Alberto Tan, Shawn W.
author_sort	Osnago, Alberto
title	Disaggregating the Impact of the Internet on International Trade
title_short	Disaggregating the Impact of the Internet on International Trade
title_full	Disaggregating the Impact of the Internet on International Trade
title_fullStr	Disaggregating the Impact of the Internet on International Trade
title_full_unstemmed	Disaggregating the Impact of the Internet on International Trade
title_sort	disaggregating the impact of the internet on international trade
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/08/26671672/disaggregating-impact-internet-international-trade http://hdl.handle.net/10986/24866
_version_	1764457860925751296

Disaggregating the Impact of the Internet on International Trade

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