Thursday, December 18, 2014
Tweet[IWS] USITC: INTERNET USE AND OPENNESS TO TRADE [December 2014]
IWS Documented News Service
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Institute for Workplace Studies-----------------Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor--------------------Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
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U.S. International Trade Commission (USITC)
INTERNET USE AND OPENNESS TO TRADE [December 2014]
by David Riker
http://www.usitc.gov/publications/332/ec201412c.pdf
[full-text, 24 pages]
Abstract
This paper presents an econometric model that links the number of broadband users in a country
to its volume of international trade in goods and services. The model indicates that the growth in
broadband use between 2000 and 2011 increased a country’s openness to trade (measured by the
ratio of their total trade to their GDP) by 4.21 percentage points on average, with much larger
effects in high income countries (a 10.21 percentage point increase on average) than in developing
countries (a 1.67 percentage point increase on average). We also use the econometric model to
project how each country’s openness to trade will be affected by expected future growth in
broadband use: we project that the trade-to-GDP ratios will increase an additional 6.88 percentage
points on average in the high income countries and an additional 1.67 percentage points on average
in the developing countries due to further growth in broadband use over the next five years.
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