Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/163241
Authors: 
Lendle, Andreas
Olarreaga, Marcelo
Year of Publication: 
2017
Series/Report no.: 
ADBI Working Paper Series 742
Abstract: 
Technology made available by online markets has significantly reduced the cost of entry into international markets for small and medium sized firms, who can now reach far away consumers and create global reputation as a seller at very low costs. Empirical evidence using data from eBay sellers shows that a large share of online firms exports, even though they are on average much smaller than traditional offline firms. We show that in a world where income inequality is driven by an uneven distribution of capital rents, online markets help to reduce income inequality by providing smaller firms access to international markets.
Subjects: 
Online markets
international trade
income inequality
JEL: 
F1
F6
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
Document Type: 
Working Paper

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