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Online Business Platforms and International Trade

Author

Listed:
  • Carballo, Jerónimo
  • Rodríguez Chatruc, Marisol
  • Salas Santa, Catalina
  • Volpe Martincus, Christian

Abstract

International trade is subject to information incompleteness. Firms must therefore engage in a costly search process to find business partners. Online platforms can reduce these search costs and thereby favor firms exports. We examine whether this is actually the case and the underlying mechanisms thereof by focusing on ConnectAmericas, a free, purely informational online platform that, by the end of 2018, connected more than 45,000 firms from 140 countries. In particular, we estimate the impact of using the platform on firms foreign sales utilizing detailed data on both firms participation therein and the entire universe of export transactions for Peru over the period 2010-2018. In so doing, we apply a difference-in-differences strategy and specifically exploit visits firms received to their profiles as a source of identifying variation. Consistent with the interpretation of the platform as a search cost-reducing mechanism, our estimates suggest that ConnectAmericas resulted in increased firms exports, particularly from those that had no digital presence, of differentiated products, and to less familiar destinations.

Suggested Citation

  • Carballo, Jerónimo & Rodríguez Chatruc, Marisol & Salas Santa, Catalina & Volpe Martincus, Christian, 2020. "Online Business Platforms and International Trade," IDB Publications (Working Papers) 10430, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:10430
    DOI: http://dx.doi.org/10.18235/0002459
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    Cited by:

    1. is not listed on IDEAS
    2. Shen, Guobing & Shen, Binchao & Wu, Ruochen, 2025. "Internetization, supplier search, and diversification of global supply chains," European Economic Review, Elsevier, vol. 172(C).
    3. Keyong Zhang & Jie Wang & Yunxia Wu, 2025. "A Study of the Impact of Manufacturing Input Digitization on Firms’ Organizational Resilience: Evidence from China," Sustainability, MDPI, vol. 17(3), pages 1-17, January.
    4. Qigang Yuan & Yongsheng Ji & Wei Zhang & Ting Lei, 2024. "Cross-Border E-Commerce and Urban Entrepreneurial Vitality—A Quasi-Natural Experiment Evidence from China," Sustainability, MDPI, vol. 16(5), pages 1-23, February.
    5. Wang, Mengying & Ren, Siyu & Xie, Guo, 2024. "Going “green trade”: Assessing the impact of digital technology application on green product export," Technology in Society, Elsevier, vol. 77(C).
    6. Lilia Patrignani, 2024. "Understanding digital trade," Questioni di Economia e Finanza (Occasional Papers) 841, Bank of Italy, Economic Research and International Relations Area.
    7. Ra'ul M'inguez & Asier Minondo, 2024. "The increasing share of low-value transactions in international trade," Papers 2407.15509, arXiv.org, revised Dec 2024.
    8. Cusolito, Ana P. & Darova, Ornella & McKenzie, David, 2023. "Capacity building as a route to export market expansion: A six-country experiment in the Western Balkans," Journal of International Economics, Elsevier, vol. 144(C).
    9. Franco Riottini Depetris, 2024. "Do Ambassadors Matter? The effect of ambassadors on trade promotion," Young Researchers Working Papers 15, Universidad de San Andres, Departamento de Economia, revised Aug 2024.
    10. repec:wbk:wbrwps:10256 is not listed on IDEAS
    11. Alessandra Bonfiglioli & Rosario Crinò & Mattia Filomena & Gino Gancia, 2025. "Comparative Advantage in AI-Intensive Industries: Evidence from US Imports," CESifo Working Paper Series 11642, CESifo.
    12. Riottini Depetris Franco, 2024. "Do Ambassadors Matter? The effect of ambassadors on trade promotion," Asociación Argentina de Economía Política: Working Papers 4757, Asociación Argentina de Economía Política.
    13. Zhang, Chaoshuai & Qiu, Peng & Zhang, Liang & Hong, Xiaoyu & Wang, Dingqing, 2024. "The impact of digital transformation on enterprises' export stability: Evidence from listed companies in China," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    14. Volpe Martincus, Christian & Sztajerowska, Monika & Santi, Mariana Belén, 2024. "Consumers and Firms in International Trade," IDB Publications (Working Papers) 13558, Inter-American Development Bank.
    15. Wang, Fei & Zhou, Yanping, 2025. "Cross-border E-commerce, platform economy, and export product quality," International Business Review, Elsevier, vol. 34(5).
    16. Liu, Feifei & Gao, Jie & Jia, Yu, 2025. "Cross-border digital platforms and discretionary adaptation strategy of exporters in emerging markets: The capability building perspective," International Business Review, Elsevier, vol. 34(4).
    17. Li, Na & Zhang, Xianhua, 2025. "Digital empowered business environment and enterprise innovation: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 91(C).
    18. Annette Broocks & Zuzanna Studnicka, 2025. "Gravity and trade in video on demand services," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(2), pages 571-609, May.
    19. Shen, Guobing & Shen, Binchao & Wu, Ruochen & Yuan, Zhengyu, 2023. "Internetization and the markups of export firms: Evidence from China," Economic Modelling, Elsevier, vol. 120(C).

    More about this item

    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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