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ICT’s effect on trade: Perspective of comparative advantage

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  • Wang, Yao
  • Li, Jie

Abstract

This paper uses country-level ICT data and bilateral trade data in 2013 to test whether cross-country differences in ICT can be a source of comparative advantage in international trade. Empirical results show that a country’s export in one industry increases 10 percent if the country’s ICT development index increases 1 standard deviation (SD) and industry’s R&D intensity increases 1 SD. The export increase is 25 percent in the case of task complexity.

Suggested Citation

  • Wang, Yao & Li, Jie, 2017. "ICT’s effect on trade: Perspective of comparative advantage," Economics Letters, Elsevier, vol. 155(C), pages 96-99.
    • Handle: RePEc:eee:ecolet:v:155:y:2017:i:c:p:96-99
    DOI: 10.1016/j.econlet.2017.03.022
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    References listed on IDEAS

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    Cited by:

    1. Margarita Billon & Antonio Rodríguez‐Andrés & Ernesto Rodríguez‐Crespo, 2023. "Broadband use and trade facilitation: Impacts on bilateral trade of sub‐Saharan countries," African Development Review, African Development Bank, vol. 35(2), pages 113-125, June.
    2. Jacques Simon Song & Hervé William Mougnol A Ekoula & Adalbert Abraham Ghislain Melingui Bate, 2022. "Does ICTs diffusion increase bilateral trade in Africa? Empirical evidence using an augmented gravity model," Economics Bulletin, AccessEcon, vol. 42(2), pages 810-826.
    3. Wenjing Zu & Guoda Gu & Sihan Lei, 2022. "Does Digital Transformation in Manufacturing Affect Trade Imbalances? Evidence from US–China Trade," Sustainability, MDPI, vol. 14(14), pages 1-14, July.

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    More about this item

    Keywords

    Information and communication technology (ICT) development; R&D intensity; Task complexity; Comparative advantage;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • F1 - International Economics - - Trade
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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