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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 1-26, 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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    3. Sun, Meng, 2021. "The Internet and SME Participation in Exports," Information Economics and Policy, Elsevier, vol. 57(C).
    4. Ayberk SEKER, 2017. "Uluslararasi Ticarette Internet Kullaniminin Rolu: Turkiye Ornegi," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 17(1), pages 75-88.
    5. 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).
    6. 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.
    7. 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.
    8. Yang, Mengjun & Zheng, Shilin & Zhou, Lin, 2022. "Broadband internet and enterprise innovation," China Economic Review, Elsevier, vol. 74(C).
    9. 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.
    10. 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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