Number 693 December 2000 ON THE EFFECT OF THE INTERNET ON INTERNATIONAL TRADE

By Caroline Freund, Diana M. Weinhold. 2000

824 citations recorded by the source corpus.

: The Internet stimulates trade. Using a gravity equation of trade among 56 countries, we find no evidence of an effect of the Internet on total trade flows in 1995 and only weak evidence of an effect in 1996. However, we find an increasing and significant impact from 1997 to 1999. Specifically, our results imply that a 10 percent increase in the relative number of web hosts in one country would have led to about 1 percent greater trade in 1998 and 1999. Surprisingly, we find that the effect of the Internet on trade has been stronger for poor countries than for rich countries

Subfields: Economics and Econometrics, Media Technology

View Paper: https://www.semanticscholar.org/paper/4eb49bb21a22cf4b8be636508d3e456764b6092d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Media Technology

Citations in the corpus

The Internet and International Trade in Services (2002, background): “However, in Freund and Weinhold (2000) we argue that, even if a Venezuelan domain name, for example, is located in another country, it is likely that the content of the site is aimed at Venezuelans.”
The direct and indirect impact of culture on innovation (2014, background): “Forces of globalization largely rely on innovative products and services; one need only look at the tremendous impact of the internet on global trade to realize how innovation is embedded in and inseparable from globalization (Freund and Weinhold, 2004).”
The impact of ISO 9000 diffusion on trade and FDI: A new institutional analysis (2008, neutral): “These findings—strong 'pull' and weak 'push'—conform to the pre-existing empirical literature using panel data techniques to estimate gravity-based trade equations (e.g., Freund and Weinhold, 2004).”
Why trade facilitation matters to Africa1 (2009, positive): “Gatti (2004) uses data on corruption and trade policy to show that higher trade costs – in this case, tariff rates – are indeed associated with a higher level of corruption.”
On the Conservation of Distance in International Trade (2004, background): “Leamer and Storper (2001) argue that personal contact is important, thus the effect of distance will change very little from important advances in communications such as the Internet.2 They offer 2 Indeed, Freund and Weinhold 2003 do not find evidence that the Internet has altered the effect of dist”