Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/61408
Authors: 
Mattes, Anselm
Meinen, Philipp
Pavel, Ferdinand
Year of Publication: 
2012
Series/Report no.: 
DIW Discussion Papers 1182
Abstract: 
This paper empirically assesses whether the deployment and use of Information and Communication Technology (ICT) infrastructure at the national level affects trade flows within the European Union (EU) and between the EU and its main trading partners. The analysis tests the hypothesis that availability and use of ICT enhances trade by reducing transaction costs and through network effects that materialize when both trading partners are advanced users of ICT. The empirical analysis is based on the application of gravity equations in various robust specifications. The results suggest that ICT does have a significant impact on EU trade. In particular, we find trade to be enhanced if both trading partners reveal advanced ICT endowments, which supports the expected network effects. Additionally, we observe trade diversion effects from less to highly ICT developed countries.
Subjects: 
Exports
ICT
gravity model
international trade
network effects
JEL: 
F1
D2
Document Type: 
Working Paper

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