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The effect of the internet on the margins of trade

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  • Visser, Robin

Abstract

This paper investigates the effect of internet penetration in the form of broadband subscriptions on the extensive and intensive margins of differentiated exports, and assesses whether the internet bridges the linguistic gap in trade. Results tentatively indicate that there is a positive association between an increase in internet penetration and the extensive and intensive margins of differentiated exports. Splitting the sample into development levels, internet penetration may facilitate the extensive margin of exports between low and high income countries, but not within these groups. Lastly, an increase in internet penetration may decrease the effect of linguistic distance on the extensive and intensive margins of differentiated exports.

Suggested Citation

  • Visser, Robin, 2019. "The effect of the internet on the margins of trade," Information Economics and Policy, Elsevier, vol. 46(C), pages 41-54.
    • Handle: RePEc:eee:iepoli:v:46:y:2019:i:c:p:41-54
    DOI: 10.1016/j.infoecopol.2018.12.001
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    5. Lynda Sanderson & Garrick Wright-McNaughton & Naomitsu Yashiro, 2022. "Does high-speed internet boost exporting?," Working Papers 2022/02, New Zealand Productivity Commission.
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    7. Joël Cariolle & Michele Imbruno & Jaime de Melo, 2020. "Bilateral digital connectivity and firm participation in export markets," Working Papers hal-03182438, HAL.
    8. Gnangnon, Sèna Kimm, 2022. "Internet, Participation in International Trade, and Tax Revenue Instability," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 267-315.
    9. Shetewy, Nsreen & Shahin, Ahmed Ismail & Omri, Anis & Dai, Kuizao, 2022. "Impact of financial development and internet use on export growth: New evidence from machine learning models," Research in International Business and Finance, Elsevier, vol. 61(C).
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    More about this item

    Keywords

    Internet; Gravity model; Exports; Extensive margin; Intensive margin; Linguistic distance;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F19 - International Economics - - Trade - - - Other

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