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The Role of Internet Use on International Trade: Evidence from Asian and Sub-Saharan African Enterprises

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  • Yadav Niru

    (School of International Studies, University of the Pacific, George Wilson Hall 3601 Pacific Avenue, Stockton, CA 95211, USA)

Abstract

Internet use is expected to reduce fixed information-related costs of entering international markets. This paper looks at the impact of internet use by developing country firms from Asia and Sub-Saharan Africa on their export and input import behavior. Using the enterprise survey dataset from the World Bank, the paper finds that e-mail and own website use have a positive impact on the extensive margin of enterprise export and input import behavior but not on the intensive margin. In addition, both these internet tools affect export and input import likelihood of manufacturing enterprises only and not of service enterprises. These results are robust after controlling for self-selection bias and for factors that may affect both internet adoption and international market participation.

Suggested Citation

  • Yadav Niru, 2014. "The Role of Internet Use on International Trade: Evidence from Asian and Sub-Saharan African Enterprises," Global Economy Journal, De Gruyter, vol. 14(2), pages 189-214, April.
    • Handle: RePEc:bpj:glecon:v:14:y:2014:i:2:p:26:n:1
    DOI: 10.1515/gej-2013-0038
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    Cited by:

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    2. Nnanna P. Azu & Philip A. Nwauko, 2021. "Evaluating the Effect of Digital Transformation on Improvement of Service Trade in West Africa," Foreign Trade Review, , vol. 56(4), pages 430-453, November.
    3. Fan, Zhaobin & Bian, Ruimin & Anwar, Sajid, 2024. "Can digital transformation of services promote participation in manufacturing global value chains?," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1074-1092.
    4. Yifei Mu & Zhen Chen & Yibing Ding & Yuqing Wang & Bo Pang, 2020. "How the Internet Promotes China's Exports: A Firm‐level Perspective," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(5), pages 118-142, September.
    5. ANTWI AGYEI Bright & BOADI Joana Ankobea & NUNOO Linda Ofeibea & MENSAH Cornelius Nii Odoi & AMPEDU Raphael & MANG'ATI Frank Peter & BOAKYE-BOATENG Gifty, 2024. "The Influence of Social Media on Consumer Behavior in Sub-Saharan Africa: An Empirical Evidence from Ghana," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(8), pages 3102-3121, August.
    6. Mina Baliamoune, 2021. "Trade, Infrastructure, and Female Participation in Labor Markets," Research papers & Policy papers on Trade Dynamics and Policies 2110, Policy Center for the New South.
    7. Shuzhong Ma & Zengxi Hu, 2023. "Internet penetration and multi‐product exporters: Firm‐level evidence from China," The World Economy, Wiley Blackwell, vol. 46(5), pages 1444-1470, May.
    8. Visser, Robin, 2019. "The effect of the internet on the margins of trade," Information Economics and Policy, Elsevier, vol. 46(C), pages 41-54.
    9. Sun, Meng, 2021. "The Internet and SME Participation in Exports," Information Economics and Policy, Elsevier, vol. 57(C).
    10. Shetewy, Nsreen & Shahin, Ahmed Ismail & Omri, Anis & Dai, Kuizao, 2022. "Impact of financial development and internet use on export growth: New evidence from machine learning models," Research in International Business and Finance, Elsevier, vol. 61(C).
    11. Muhammad Tariq Majeed & Amna Malik, 2016. "E-government, Economic Growth and Trade: A Simultaneous Equation Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 499-519.
    12. Yang, Mengjun & Zheng, Shilin & Zhou, Lin, 2022. "Broadband internet and enterprise innovation," China Economic Review, Elsevier, vol. 74(C).
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    14. Lifan Yang & Jiatian Dong & Weixin Yang, 2024. "Analysis of Regional Competitiveness of China’s Cross-Border E-Commerce," Sustainability, MDPI, vol. 16(3), pages 1-20, January.

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    More about this item

    Keywords

    Asia; Sub-Saharan Africa; internet; exports; input imports;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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