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The effect of broadband on European Union trade: A regional spatial approach

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  • Javier Barbero
  • Ernesto Rodriguez‐Crespo

Abstract

The positive effect of information and communication technologies (ICT) on trade between countries has been widely studied in the literature, but how ICT impacts regional trade is limited due to the lack of regional trade data. In this paper, we test whether broadband, as a proxy for ICT, increases bilateral trade at the regional level in Europe. We use a novel regional trade database of European Union regions and estimate an origin–destination flow gravity model for 2007 and 2010, accounting for spatial dependence among trade flows. Our results indicate that broadband is positive and significant in explaining trade patterns between European regions during both time periods.

Suggested Citation

  • Javier Barbero & Ernesto Rodriguez‐Crespo, 2018. "The effect of broadband on European Union trade: A regional spatial approach," The World Economy, Wiley Blackwell, vol. 41(11), pages 2895-2913, November.
    • Handle: RePEc:bla:worlde:v:41:y:2018:i:11:p:2895-2913
    DOI: 10.1111/twec.12723
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    Cited by:

    1. Persyn, Damiaan & Díaz-Lanchas, Jorge & Barbero, Javier, 2022. "Estimating road transport costs between and within European Union regions," Transport Policy, Elsevier, vol. 124(C), pages 33-42.
    2. Myovella, Godwin & Karacuka, Mehmet & Haucap, Justus, 2021. "Determinants of digitalization and digital divide in Sub-Saharan African economies: A spatial Durbin analysis," Telecommunications Policy, Elsevier, vol. 45(10).
    3. Malgouyres, Clément & Mayer, Thierry & Mazet-Sonilhac, Clément, 2021. "Technology-induced trade shocks? Evidence from broadband expansion in France," Journal of International Economics, Elsevier, vol. 133(C).
    4. Richard Pomfret, 2020. "Global Production Networks, New Trade Technologies and the Challenge for International Institutions," Foreign Trade Review, , vol. 55(1), pages 21-41, February.
    5. Bunje, Madinatou Yeh & Abendin, Simon & Wang, Yin, 2022. "The multidimensional effect of financial development on trade in Africa: The role of the digital economy," Telecommunications Policy, Elsevier, vol. 46(10).
    6. Kersan-Škabić Ines, 2021. "Information and Communication Technology Development and Foreign Trade in the Region of South-East Europe," South East European Journal of Economics and Business, Sciendo, vol. 16(2), pages 101-113, December.
    7. Tanja Broz & Goran Buturac & Miloš Parežanin, 2020. "Digital transformation and economic cooperation: The case of Western Balkan countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(2), pages 697-722.
    8. repec:hal:wpspec:info:hdl:2441/4b7tooefh48jlq7oktt0tbn8om is not listed on IDEAS
    9. repec:hal:spmain:info:hdl:2441/4b7tooefh48jlq7oktt0tbn8om is not listed on IDEAS
    10. Awad, Atif & Albaity, Mohamed, 2022. "ICT and economic growth in Sub-Saharan Africa: Transmission channels and effects," Telecommunications Policy, Elsevier, vol. 46(8).
    11. Ndubuisi, Gideon & Avenyo, Elvis, 2018. "Estimating the effects of robotization on exports," MERIT Working Papers 2018-046, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. repec:spo:wpmain:info:hdl:2441/4b7tooefh48jlq7oktt0tbn8om is not listed on IDEAS
    13. repec:spo:wpecon:info:hdl:2441/4b7tooefh48jlq7oktt0tbn8om is not listed on IDEAS

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