The Role of ICT in ASEAN-5’s Services Exports: A Panel Study

Beng Ann Tee (), Siew Yean Tham () and Andrew Jia Yi Kam ()
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Beng Ann Tee: Institute of Malaysian and International Studies, Universiti Kebangsaan Malaysia
Siew Yean Tham: ISEAS-Yusof Ishak Institute
Andrew Jia Yi Kam: Institute of Malaysian and International Studies, Universiti Kebangsaan Malaysia

Malaysian Journal of Economic Studies, 2020, vol. 57, issue 1, 1-19

Abstract: ICT intensive services were found to contribute to the service export growth in developed countries. However, empirical work on the role of ICT in ASEAN’s services export is sparse due mainly to the scarcity of bilateral services trade data. This study uses mirror data from the ASEAN-5’s trading partners from 2000 to 2012 for examining the impact of ICT on the ASEAN-5’s services export. A set of constructed ICT indicators are found to have significant positive network effect on the ASEAN-5’s services export. Thus, the higher the ICT development level in both trading partner countries, the higher their bilateral services exports with each other. But, the positive impact of ICT on the ASEAN-5’s trade in services can be offset by the presence of trade costs. Therefore, policies enhancing trade facilitation should be used in tandem with the development of ICT in order to promote the ASEAN-5’s services export.

Keywords: ASEAN; gravity model; ICT development index; services export (search for similar items in EconPapers)
JEL-codes: F1 F14 L8 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:mjr:journl:v:57:y:2020:i:1:p:1-19

DOI: 10.22452/MJES.vol57no1.1

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