ICTs impacts on trade: a comparative dynamic analysis for internet, mobile phones and broadband

Abstract

ABSTRACT We investigate the impact of internet use, mobile phones, and broadband on bilateral trade flows using a dynamic gravity model and panel data for 2004‒2013. We find a significant and positive relationship between each type of ICT and bilateral exports, although the impacts vary depending on the type of technology. Our findings suggest that the effect of ICT use is larger for mobile phones and smaller for broadband. The impact on trade is greater for the exporter than for the importer. Mobile phones register the greatest effect for import countries in trade flows from high-income to low- and middle-income countries.