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Information and Communications Technology (ICT) and Services Trade

Author

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  • Lirong Liu

    (Department of Economics and Finance, Texas A&M University - Commerce)

  • Hiranya Nath

    (Department of Economics and International Business, Sam Houston State University)

Abstract

Using panel data for 49 countries from 2000 to 2013, this paper empirically examines the impacts of ICT on exports and imports of ten service categories. Unlike most previous studies, seven different ICT variables are used to construct a comprehensive ICT development index (IDI) that captures the access, use, and skill aspects of the technology. The results indicate that overall ICT development has significant positive impacts on the exports of 'other business services' and 'transportation services' and the imports of 'insurance services', 'telecommunication services', and 'travel services'. This result is robust under different estimation methods. Among the three ICT components, ICT use is found to be more important than access and skills for trade in a number of services. Furthermore, when the models are estimated separately for advanced economics (AEs) and emerging market economies (EMEs), ICT development appears to be more important for exports from AEs and for imports by EMEs. Finally, ICT use is more important in EMEs than in AEs, particularly for imports. These results provide important policy insights for ICT development and growth of services trade.

Suggested Citation

  • Lirong Liu & Hiranya Nath, 2016. "Information and Communications Technology (ICT) and Services Trade," Working Papers 1601, Sam Houston State University, Department of Economics and International Business.
    • Handle: RePEc:shs:wpaper:1601
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    References listed on IDEAS

    as
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    7. Adusei Poku, Eugene & Broni-Pinkrah, Samuel & Effah Nyamekye, Gabriel, 2016. "Modelling and assessment of the effect of income on service exports in Ghana," MPRA Paper 72312, University Library of Munich, Germany.
    8. Hildegunn Kyvik Nordås, 2021. "Editorial," Foreign Trade Review, , vol. 56(3), pages 235-237, August.
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    12. Zi Hui Yin & Chang Hwan Choi, 2023. "The effects of China’s cross-border e-commerce on its exports: a comparative analysis of goods and services trade," Electronic Commerce Research, Springer, vol. 23(1), pages 443-474, March.
    13. Nakano, Satoshi & Washizu, Ayu, 2018. "Induced effects of smart food/agri-systems in Japan: Towards a structural analysis of information technology," Telecommunications Policy, Elsevier, vol. 42(10), pages 824-835.
    14. Awad, Atif & Albaity, Mohamed, 2022. "ICT and economic growth in Sub-Saharan Africa: Transmission channels and effects," Telecommunications Policy, Elsevier, vol. 46(8).
    15. Danish, & Baloch, Muhammad Awais & Wang, Bo, 2019. "Analyzing the role of governance in CO2 emissions mitigation: The BRICS experience," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 119-125.
    16. Burcu Ozcan, 2018. "Information and communications technology (ICT) and international trade: evidence from Turkey," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 93-113, April.
    17. Akihiko Shinozaki & Shigehiro Kubota, 2018. "The Role of Cross-Border Networks of Skilled Labor in Offshore Outsourcing: Empirical Evidence Based on the Network Theory," The Review of Socionetwork Strategies, Springer, vol. 12(2), pages 153-165, December.
    18. Peng Zhou & Fengwen Chen & Wei Wang & Peixin Song & Chenliang Zhu, 2019. "Does the Development of Information and Communication Technology and Transportation Infrastructure Affect China’s Educational Inequality?," Sustainability, MDPI, vol. 11(9), pages 1-19, May.
    19. Dzator, Janet & Acheampong, Alex O. & Appiah-Otoo, Isaac & Dzator, Michael, 2023. "Leveraging digital technology for development: Does ICT contribute to poverty reduction?," Telecommunications Policy, Elsevier, vol. 47(4).
    20. Burcu Ozcan & Hiranya Nath, 2016. "Information and Communication Technology (ICT) and International Trade: Evidence from Turkey," Working Papers 1609, Sam Houston State University, Department of Economics and International Business.
    21. Ziyu Yi & Long Wei & Xuan Huang, 2022. "Does Information-and-Communication-Technology Market Openness Promote Digital Service Exports?," Sustainability, MDPI, vol. 14(9), pages 1-19, April.
    22. Mahdi Ghodsi, 2023. "Regulatory Convergence within Technical Barriers to Trade," wiiw Working Papers 229, The Vienna Institute for International Economic Studies, wiiw.
    23. Dolores Añon Higón & Juan A. Daniel Bonvin, 2023. "Do digitalization spurs SMEs’ participation in foreign markets?," Working Papers 2307, Department of Applied Economics II, Universidad de Valencia.
    24. Mahdi Ghodsi, 2021. "Impact of Technical Barriers to Trade on the Trade in Goods in the Information and Communications Technology Sector: Differentiating by Aim of the Regulatory Measure," wiiw Working Papers 208, The Vienna Institute for International Economic Studies, wiiw.

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    More about this item

    Keywords

    Information and Communication Technology (ICT); Advanced Economy (AE); Emerging Market Economy (EME); Services Exports; Services Imports; ICT Development Index (IDI); ICT Access; ICT Use; ICT Skills;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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