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Do more communication tools make us trade more? Reassessing the evidence
| Content Provider | Semantic Scholar |
|---|---|
| Author | Abeliansky, Ana Lucia Hilbert, Martin |
| Copyright Year | 2019 |
| Abstract | Theoretical reasoning and anecdotal evidence from g lobal online retailers suggest that the digital network should affect glob a trade patterns. Previous research has used proxies for the installed digital capacity to test related hypothesis, such as the number of installed Informa tion and Communication Technology (ICT) devices. We use a more accurate an d informative independent variable and consider the installed telecommunicati on bandwidth in a country (in kbps per subscriber). The uniqueness of this new va riable is that it is able to measure the total connectivity potential of countri es, of all of their telecommunication devices. We study the relationshi p between telecommunication potential of countries with an au gmented Gravity Model that properly controls for multilateral resistance, for a panel of more than 120 countries over the period 1995-2008. Regression res ults how a significant effect on export performance depending on the level of con nectivity of the trading partner and the ICTs' technology gap between them. The size of the evidence differs according to the sample of countries, disti nguished by the level of economic development. ICTs seem to have a higher im pact on developed countries. Estimates also suggest a North-North pol arization of World trade, given the deepening of the digital divide. Developi ng countries should catch up, if they want to increase their participation in the global trade network. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.uniba.it/ricerca/dipartimenti/dse/e.g.i/egi2014-papers/abelianksy |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
