Cloud computing and rural globalization: Evidence for the U.S. nonfarm economy

Abstract

We use confidential firm-level data to examine the association between export intensity and subscription to cloud computer services – a technology that often requires very high-speed broadband. Our focus on rural nonfarm exports is motivated by the increasing concentration of manufacturing—the dominant export sector—in nonmetropolitan counties and the large public investment in extending high-speed broadband to underserved parts of the U.S. We find that cloud computing is associated with higher export intensity that is consistent with exporting activity placing new demands on IT-enabled functions such as order fulfillment and tracking, marketing, or document control.