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Blockchain Technology and Facilitation of International Trade: An Empirical Analysis

Author

Listed:
  • Md. Nur Alam Siddik
  • Sajal Kabiraj
  • Md. Emran Hosen
  • Md. Firoze Miah

Abstract

Blockchain technology, a distributed and decentralized ledger, has gained significant prominence in the sphere of information technology for introducing new innovations in international trade. It ensures safety and can reduce trade costs by removing the middleman from the trade process. Studies examining the effects of blockchain on international trade are scarce. This research aims to fill this research gap. By using time series world data for the period 2009–2018, this study empirically examines the link between blockchain and international trade. It uses a cointegration test and a generalized linear model (GLM) test to analyse the data. The robust findings of this research reveal that blockchain has positive effects on international trade. The findings further displays that blockchain accelerates and facilitates international trade and that there exists a unidirectional causality from blockchain to international trade. The research findings are of great significance for policymakers in developing policies to foster the use of blockchain applications as a facilitator of international trade.

Suggested Citation

  • Md. Nur Alam Siddik & Sajal Kabiraj & Md. Emran Hosen & Md. Firoze Miah, 2021. "Blockchain Technology and Facilitation of International Trade: An Empirical Analysis," FIIB Business Review, , vol. 10(3), pages 232-241, September.
    • Handle: RePEc:sae:fbbsrw:v:10:y:2021:i:3:p:232-241
    DOI: 10.1177/2319714520968297
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    References listed on IDEAS

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