Are Internet and Face-to-Face Contacts Complements or Substitutes? Evidence from Internet Traffic between Cities
AbstractThis paper uses a new dataset on Internet flows between cities around the world to study whether electronic communication and face-to-face contacts are substitutes or complements. In order to test these competing hypotheses I estimate a regression of bilateral Internet traffic on physical distance between pairs of cities and several city and country-specific variables that include a control for cities’ population, countries’ population and per capita GDP, the number of Internet users, the intensity of trade between countries, and several dummies that aim to capture city specific effects and the degree of familiarity between residents of different countries. The estimates reveal a strong and robust negative effect of distance on the intensity of electronic communications, suggesting that Internet and face-to-face contacts are more likely to be complements than substitutes.
Download InfoIf 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.
Bibliographic InfoPaper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2013010.
Length: 26 pages
Date of creation: 2013
Date of revision:
cities; Internet; face-to-face contacts; death of distance;
Find related papers by JEL classification:
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-05 (All new papers)
- NEP-GEO-2013-08-05 (Economic Geography)
- NEP-ICT-2013-08-05 (Information & Communication Technologies)
- NEP-INT-2013-08-05 (International Trade)
- NEP-SOC-2013-08-05 (Social Norms & Social Capital)
- NEP-URE-2013-08-05 (Urban & Real Estate Economics)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral 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: (David Cuberes).
If references are entirely missing, you can add them using this form.