Does the internet promote international trade?—Evidence from gravity models and firm data
This paper examines the impact of the internet on international trade combining theory model and inter-country as well as firm data between 2004 and 2014.Results show that internet infrastructure has a positive effect on total export,but this effect is gradually fading over time.From the perspective of firms,we find that internet promotes more firms to enter export markets,but reduces the export amounts for each firm to specific country in specific product,which is consistent with the theoretical model.Heterogeneity analysis shows that internet has a stronger boosting effect on trade in low-income and greater cultural distance countries,while it has a positive effect in low entry cost industries and private firms significantly.Finally,it is found that internet reduces the negative effect of intensive margin by expanding more export markets and improving the quality of export products.
internetinternational trademarket competitiongravity model
NETL
NSTL
万方数据
