Internet use, intermediaries and international trade

This study of the relationship between internet use and international trade finds that firms in many developing countries are more likely to engage in export and/or import if they use the internet as a communication tool. An ordered probit regression indicates that internet use is positively associated with direct participation in trade, as well as with indirect participation via trade intermediaries. Data on countries’ aggregate trade do not give support for the micro-findings, however: no significant association emerges between the share of internet users in a given country and that country's openness to trade.