Information and Communication Technology (ICT) and International Trade: Evidence from Turkey

Burcu Ozcan and Hiranya Nath

No 1609, Working Papers from Sam Houston State University, Department of Economics and International Business

Abstract: This study analyzes the impacts of information and communication technology (ICT) on international trade between Turkey and its trading partners. Based on an extended panel gravity model, the effects of four ICT indices on Turkish bilateral exports and imports are examined with static and dynamic panel data models for the period 2000-2014. The sample includes 35 countries that import Turkish goods and 34 countries that export goods to Turkey. The results indicate that ICT has positive and significant impacts on both Turkish import and export volumes. Additionally, ICT has a larger effect on imports than on exports. Among ICT indices, ICT access has the largest effect on exports while ICT skills have the strongest impact on imports. In contrast, ICT use has the least impact on both Turkish exports and imports. These results are robust to alternative specifications and estimation methods. Based on these results, some policy implications can be derived. For instance, Turkey may develop strategic trading partnerships with countries that have high levels of ICT endowments, in order to increase its overall trade.

Keywords: : Information and Communication Technology; international trade; trade costs; gravity model; panel data models (search for similar items in EconPapers)
JEL-codes: F10 F14 O30 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2016-09
New Economics Papers: this item is included in nep-ara, nep-cse, nep-cwa, nep-ict, nep-int and nep-pay
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:shs:wpaper:1609

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