Has the Internet Increased Trade? Developed and Developing Country Evidence

George Clarke () and Scott J. Wallsten

Economic Inquiry, 2006, vol. 44, issue 3, pages 465-484

Abstract: Developing countries export more to developed, but not other developing countries, when Internet penetration is higher. Although this could be because Internet penetration stimulates exports, it could also be because trade openness encourages Internet use. To test the direction of causation, we allow Internet use to be determined endogenously using countries' regulation of data services as an instrument. The results suggest that access to the Internet does improve export performance in developing countries, although not in developed countries. In other words, improving Internet access in a developing country will stimulate exports from that country to rich countries. (JEL F15) Copyright 2006, Oxford University Press.

JEL-codes: F15 (search for similar items in EconPapers)
Date: 2006

Downloads: (external link)
http://hdl.handle.net/10.1093/ei/cbj026 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Economic Inquiry is edited by Preston McAfee

More articles in Economic Inquiry from Oxford University Press
Address: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Series data maintained by Christopher F. Baum ().