Market-Creating Effect of the Internet on Food Trade
This paper analyses the impact of the number of the Internet users on food industry trade between developed OECD countries using both panel and cross-sectional data. We find the positive, significant and over time increasing effect of the Internet on food industry exports confirming that the Internet reduces market-specific entry costs for food industry exports. The significant positive effect pertained to the Internet is found in the importing countries. The significant positive effects on food industry exports are found for the country’s economic size and bilateral common features and proximities. The Internet mitigates the countries proximities, but increased the distance between the countries.
|Date of creation:||29 Mar 2010|
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