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The effect of the internet on the margins of trade

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  • Visser, Robin

Abstract

This paper investigates the effect of internet penetration in the form of broadband subscriptions on the extensive and intensive margins of differentiated exports, and assesses whether the internet bridges the linguistic gap in trade. Results tentatively indicate that there is a positive association between an increase in internet penetration and the extensive and intensive margins of differentiated exports. Splitting the sample into development levels, internet penetration may facilitate the extensive margin of exports between low and high income countries, but not within these groups. Lastly, an increase in internet penetration may decrease the effect of linguistic distance on the extensive and intensive margins of differentiated exports.

Suggested Citation

  • Visser, Robin, 2019. "The effect of the internet on the margins of trade," Information Economics and Policy, Elsevier, vol. 46(C), pages 41-54.
    • Handle: RePEc:eee:iepoli:v:46:y:2019:i:c:p:41-54
    DOI: 10.1016/j.infoecopol.2018.12.001
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    More about this item

    Keywords

    Internet; Gravity model; Exports; Extensive margin; Intensive margin; Linguistic distance;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F19 - International Economics - - Trade - - - Other

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