Quotation Abeliansky, Ana Lucia, Barbero, Javier, Rodriguez-Crespo, Ernesto. 2021. ICTs quality and quantity and the margins of trade. Telecommunications Policy. 45 (1)


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Abstract

Given the importance of the fixed costs of exporting, we investigate how information and communication technologies (ICTs) relate to the extensive and intensive margin of trade (the fraction of products that are exported and the market share, respectively). We use a novel dataset on the quantity and quality of ICTs, namely the number of subscriptions (per capita) and the average quality of subscriptions (bandwidth). To test this relationship, we use an augmented Gravity Model of Trade with ICTs using panel data and controlling for multilateral resistance. Regression results for 150 countries over 1995–2014 provide robust evidence that ICTs matter for the extensive margin of trade. The evidence is even stronger for developing countries in terms of quality. Although the number of subscriptions matters for the extensive margin, the quality matters even more. While having a device helps producers and consumers access world markets, how much information these devices can share and how stable connections are also matter.

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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal Telecommunications Policy
Citation Index SSCI
WU-Journal-Rating new STRAT-C, VW-D
Language English
Title ICTs quality and quantity and the margins of trade
Volume 45
Number 1
Year 2021
DOI https://doi.org/10.1016/j.telpol.2020.102056
Open Access N

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Abeliansky, Ana Lucia (Details)
External
Barbero, Javier (European Commission, Joint Research Center (JRC), Seville, Inca Garcilaso, 3, Ed. EXPO, 41092, Seville, Spain, Spain)
Rodriguez-Crespo, Ernesto (Department of Economic Structure and Development Economics, Universidad Autónoma de Madrid, Francisco Tomás y Valiente, 5, 28049, Madrid, Spain, Spain)
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