Does the internet generate economic growth, international trade, or both?

Meijers, Huub (2012). Does the internet generate economic growth, international trade, or both?. UNU-MERIT.

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UNU-MERIT Working Papers

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  • Author Meijers, Huub
    Title Does the internet generate economic growth, international trade, or both?
    Publication Date 2012
    Publisher UNU-MERIT
    Abstract Recent cross country panel data studies find a positive impact of internet use on economic growth and a positive impact of internet use on trade. The present study challenges the first finding by showing that internet use does not explain economic growth directly in a fully specified growth model. In particular openness to international trade variables seems to be highly correlated with internet use and the findings in the literature that internet use causes trade is confirmed here, suggesting that internet use impacts trade and that trade impacts economic growth. A simultaneous equations model confirms the positive and significant role of internet use to openness and the importance of openness to economic growth. Internet use has been shown to impact trade more in non-high income countries than in high income countries, whereas the impact of trade on economic growth is the same for both income groups.
    UNU Topics of Focus Trade
    Keyword Economic growth
    Internet
    Trade
    Panel
    JEL C23
    L86
    F10
    O40
    Copyright Holder UNU-MERIT
    Copyright Year 2012
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