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Internet use and export upgrading: Firm‐level evidence from China

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  • Xianhai Huang
  • Xueyin Song

Abstract

This paper explores the impact of widespread Internet use on the product choices of exporters. Based on a highly disaggregated firm–product‐level data matched from the Annual Survey of Industrial Firms and China Customs Transaction Database, our baseline empirical analysis suggests that (1) Internet use (i.e., having an official website or corporate email) affects both extensive margin and quality margin of exported products; (2) exporters using Internet propone to expand their product line of export by introducing new products (cost‐reduction effect on extensive margin); (3) the average quality of exported products becomes lower after the Internet is adopted by exporters (competition effect on quality margin). Our heterogeneous analysis further shows that (1) exporters with high productivity are immune to the negative impact of Internet use on quality margin and maintain quality growth; (2) having an official website exerts larger impacts on both extensive margin and quality margin compared with only having a corporate email system. Our research sheds light on the existing literature on Internet use and firm export behaviors.

Suggested Citation

  • Xianhai Huang & Xueyin Song, 2019. "Internet use and export upgrading: Firm‐level evidence from China," Review of International Economics, Wiley Blackwell, vol. 27(4), pages 1126-1147, September.
    • Handle: RePEc:bla:reviec:v:27:y:2019:i:4:p:1126-1147
    DOI: 10.1111/roie.12407
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    Cited by:

    1. Raphaël Chiappini & Cyrielle Gaglio, 2024. "Digital intensity, trade costs and exports' quality upgrading," The World Economy, Wiley Blackwell, vol. 47(2), pages 709-747, February.
    2. Fei Wang & Linwei Ye, 2023. "Digital Transformation and Export Quality of Chinese Products: An Analysis Based on Innovation Efficiency and Total Factor Productivity," Sustainability, MDPI, vol. 15(6), pages 1-20, March.
    3. Qian Feng & Hong Liu & Yuwei Liu & Hengyuan Zhao, 2023. "Selecting a Technological Progress Path and Upgrading Export Product Quality: Evidence From China," SAGE Open, , vol. 13(4), pages 21582440231, November.
    4. Sun, Meng, 2021. "The Internet and SME Participation in Exports," Information Economics and Policy, Elsevier, vol. 57(C).
    5. Li, Wenfei & Li, Donghui & Yang, Shijie, 2022. "The impact of internet penetration on venture capital investments: Evidence from a quasi-natural experiment," Journal of Corporate Finance, Elsevier, vol. 76(C).

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