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Cloud Computing and Extensive Margins of Exports - Evidence for Manufacturing Firms from 27 EU Countries

Author

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  • Joachim Wagner

    (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre and Kiel Centre for Globalization)

Abstract

The use of cloud computing by firms can be expected to go hand in hand with higher productivity, more innovations, and lower costs, and, therefore, should be positively related to export activities. Empirical evidence on the link between cloud computing and exports, however, is missing. This paper uses firm level data for manufacturing enterprises from the 27 member countries of the European Union taken from the Flash Eurobarometer 486 survey conducted in February – May 2020 to investigate this link. Applying standard parametric econometric models and a new machine-learning estimator, Kernel-Regularized Least Squares (KRLS), we find that firms which use cloud computing do more often export, do more often export to various destinations all over the world, and do export to more different destinations. The estimated cloud computing premium for extensive margins of exports is statistically highly significant after controlling for firm size, firm age, patents, and country. Furthermore, the size of this premium can be considered to be large. Extensive margins of exports and the use of cloud computing are positively related.

Suggested Citation

  • Joachim Wagner, 2024. "Cloud Computing and Extensive Margins of Exports - Evidence for Manufacturing Firms from 27 EU Countries," Working Paper Series in Economics 427, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:427
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    References listed on IDEAS

    as
    1. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
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    10. Joachim Wagner, 2023. "Big Data Analytics and Exports - Evidence for Manufacturing Firms from 27 EU Countries," Working Paper Series in Economics 421, University of Lüneburg, Institute of Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cloud computing; exports; firm level data; Flash Eurobarometer 486; kernel-regularized least squares (KRLS);
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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