GTAP Resources: Resource Display
GTAP Resource #7456 |
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"404 Not Found: The Internet and International Trade" by Nitsch, Volker Abstract The internet is widely believed to make cross-border business easier, thereby increasing the volume of international trade. This paper aims to provide evidence in support of this stylized fact which is typically difficult to identify empirically. Specifically, I use the country-wide internet blackout in Tonga in January 2019 as a natural experiment to examine the effect of the internet on trade. Analyzing monthly trade data for Tonga over the period from 2014 to 2019, I find an economically and statistically sizable, temporary decline in trade when the country’s internet connectivity was lost. Consequently, the damage of sudden disruptions in the existing technological infrastructure in terms of foregone trade may be indeed sizable. |
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- Infrastructure - Technological change - Transportation |
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Last Modified: 9/15/2023 2:05:45 PM