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The Role of ICT in ASEAN-5’s Services Exports: A Panel Study

Author

Listed:
  • Beng Ann Tee

    (Institute of Malaysian and International Studies, Universiti Kebangsaan Malaysia)

  • Siew Yean Tham

    (ISEAS-Yusof Ishak Institute)

  • Andrew Jia Yi Kam

    (Institute of Malaysian and International Studies, Universiti Kebangsaan Malaysia)

Abstract

ICT intensive services were found to contribute to the service export growth in developed countries. However, empirical work on the role of ICT in ASEAN’s services export is sparse due mainly to the scarcity of bilateral services trade data. This study uses mirror data from the ASEAN-5’s trading partners from 2000 to 2012 for examining the impact of ICT on the ASEAN-5’s services export. A set of constructed ICT indicators are found to have significant positive network effect on the ASEAN-5’s services export. Thus, the higher the ICT development level in both trading partner countries, the higher their bilateral services exports with each other. But, the positive impact of ICT on the ASEAN-5’s trade in services can be offset by the presence of trade costs. Therefore, policies enhancing trade facilitation should be used in tandem with the development of ICT in order to promote the ASEAN-5’s services export.

Suggested Citation

  • Beng Ann Tee & Siew Yean Tham & Andrew Jia Yi Kam, 2020. "The Role of ICT in ASEAN-5’s Services Exports: A Panel Study," Malaysian Journal of Economic Studies, Faculty of Business and Economics, University of Malaya & Malaysian Economic Association, vol. 57(1), pages 1-19, June.
    • Handle: RePEc:mjr:journl:v:57:y:2020:i:1:p:1-19
    DOI: 10.22452/MJES.vol57no1.1
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    Cited by:

    1. Ranajoy Bhattacharyya & Ripudaman Bhardwaj, 2022. "The Effect of Coronavirus Pandemic on the Rupee Dollar Exchange Rate," Working Papers 2264, Indian Institute of Foreign Trade.

    More about this item

    Keywords

    ASEAN; gravity model; ICT development index; services export;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L8 - Industrial Organization - - Industry Studies: Services

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