EconPapers    
Economics at your fingertips  
 

Technology-induced Trade Shocks? Evidence from Broadband Expansion in France

Clément Malgouyres (), Thierry Mayer () and Clément Mazet

No 13847, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In this paper, we document the presence of ''technology-induced'' trade in France between 1997 and 2007 and assess its impact on consumer welfare. We use the staggered roll-out of broadband internet to estimate its causal effect on the importing behavior of affected firms. Using an event-study design, we find that broadband expansion increases firm-level imports by around 25%. We further find that the ''sub-extensive'' margin (number of products and sourcing countries per firm) is the main channel of adjustment and that the effect is larger for capital goods. Finally, we develop a model where firms optimize over their import strategy and which yields a sufficient statistics formula for the quantification of the effects of broadband on consumer welfare. Interpreted within this model, our reduced-form estimates imply that broadband internet reduced the consumer price index by 1.7% and that the import-channel, i.e. the enhanced access to foreign goods that is allowed by broadband, accounts for a quarter of that effect.

Keywords: consumer welfare; Imports; internet; Trade (search for similar items in EconPapers)
JEL-codes: F14 F15 F61 F66 L23 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ict and nep-int
Date: 2019-07
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=13847 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Technology-induced Trade Shocks? Evidence from Broadband Expansion in France (2019) Downloads
Working Paper: Technology-Induced Trade Shocks? Evidence from Broadband Expansion in France (2019) Downloads
Working Paper: Technology-Induced Trade Shocks? Evidence from Broadband Expansion in France (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:13847

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=13847

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-12-03
Handle: RePEc:cpr:ceprdp:13847