Advanced Search
MyIDEAS: Login

Has the Internet Increased Trade? Evidence From Developed and Developing Countries

Contents:

Author Info

  • Clarke, George
  • Wallsten, Scott

Abstract

If the Internet made it easier for firms to enter new markets by reducing communication and search costs then it may also have made it easier to export goods and services. We find that higher Internet penetration in developing countries is positively correlated with exports to developed countries, but not with trade between developing countries or with exports from developed countries.Interpreting the correlations is difficult because causation may run from Internet use to exports or from trade openness to Internet use.To test whether Internet use affects export behavior, we endogenize Internet use by using countries' regulation of data services and Internet provision as instrumental variables. The results are robust to endogenizing Internet penetration, suggesting that access to the Internet does affect export performance of firms in developing countries. In other words, Internet access appears to stimulate exports from poor countries to rich countries. Moreover, the analysis suggests that regulatory policies affecting telecommunications and Internet development indirectly affect trade.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://regulation2point0.org/wp-content/plugins/download-monitor/download.php?id=100
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Archive Maintainer)
Download Restriction: no

Bibliographic Info

Paper provided by Regulation2point0 in its series Working paper with number 100.

as in new window
Length:
Date of creation: Dec 2003
Date of revision:
Handle: RePEc:reg:wpaper:100

Contact details of provider:
Web page: http://regulation2point0.org/

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Caroline L. Freund & Diana Weinhold, 2000. "On the effect of the Internet on international trade," International Finance Discussion Papers 693, Board of Governors of the Federal Reserve System (U.S.).
  2. Clarke, George & Haggarty, Luke & Kaneshiro, Rosario & Noll, Roger G. & Shirley, Mary & Wallsten, Scott & Xu, Lixin Colin, 2004. "New Tools for Studying Network Industry Reforms in Developing Countries: The Telecommunications and Electricity Regulation Database," Working paper 124, Regulation2point0.
  3. Kiiski, Sampsa & Pohjola, Matti, 2001. "Cross-country Diffusion of the Internet," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Clarke, George R. G. & Gebreab, Frew A. & Mgombelo, Henry R., 2003. "Telecommunications reform in Malawi," Policy Research Working Paper Series 3036, The World Bank.
  5. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," North American Stata Users' Group Meetings 2003 05, Stata Users Group.
  6. Caselli, Francesco & Coleman II, Wilbur John, 2001. "Cross-Country Technology Diffusion: The Case of Computers," CEPR Discussion Papers 2744, C.E.P.R. Discussion Papers.
  7. Clarke, George R.G., 2002. "Does Internet Connectivity Affect Export Performance? Evidence from Transition Economies," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  8. Pritchett, Lant, 1996. "Measuring outward orientation in LDCs: Can it be done?," Journal of Development Economics, Elsevier, vol. 49(2), pages 307-335, May.
  9. John McMillan & Christopher Woodruff, 2002. "The Central Role of Entrepreneurs in Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 153-170, Summer.
  10. Dasgupta, Susmita & Lall, Somik & Wheeler, David, 2001. "Policy reform, economic growth, and the digital divide - an econometric analysis," Policy Research Working Paper Series 2567, The World Bank.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:reg:wpaper:100. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Archive Maintainer).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.