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The Internet has transformed the way countries trade by reducing the costs of exporting. This paper quantifies the impact of Internet adoption on international trade. It shows that the Internet has a positive, nuanced, impact on international trade: bilateral exports are more affected when Internet adoption increases in the exporter than importer. A 10 percent increase in the exporter's Internet adoption leads to a 1.9 percent increase in bilateral exports, largely explained by an increase in the number of goods exported. A 10 percent increase in the importer's Internet adoption leads to a 0.6 percent increase in bilateral exports, explained by an increase in the average value of existing exported goods. The analysis also finds that when both countries have high levels of Internet adoption they are more likely to trade with each other, compared with country pairs with different (high and low) or low levels of Internet adoption.

Communication Technology --- Extensive Margins --- Intensive Margins --- International Trade --- Internet

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computer and information sciences --- information and communication technology --- Computer science --- Information science --- Informatique --- Sciences de l'information --- Communication --- Information literacy --- Library science --- Science --- Informatics --- Computer science. --- Information science. --- Poland. --- 1939-1945 --- A' Phòlainn --- An Pholainn --- Borandi --- Bu̇gėdė Naĭramdakha Polʹsho Ulas --- Būland --- Būlūniy --- Bupolska --- Bupoolo --- Commonwealth of Poland --- Congress Kingdom of Poland --- Congress Poland --- Crown of the Kingdom of Poland and the Grand Duchy of Lithuania --- General Government for Occupied Polish Territories --- Gweriniaeth Gwlad Pwyl --- Gwlad Pwyl --- IPoland --- IPolandi --- Kingdom of Poland --- Kongresówka --- Królestwo Kongresowe Polskie --- Królestwo Polskie --- Kunngiitsuuffik Poleni --- Lahistān --- Lehastan --- Lehastani Hanrapetutʻyun --- Lengyel Köztársaság --- Lengyelország --- Lenkija --- Lenkijos Respublika --- Lýðveldið Pólland --- P.N.R. --- P.R.L. --- Pho-lân --- Pho-lân Kiōng-hô-kok --- Pholainn --- Pholynn --- PNR --- Pô-làn --- Poalen --- Pobblaght ny Polynn --- Poblachd na Pòlainn --- Poblacht na Polainne --- Poin --- Polaki --- Polaland --- Poland --- Polandia --- Pōlani --- Pole --- Polen --- Poleni --- Polija --- Polijas Republika --- Polin --- Polisce Cynewise --- Polish Commonwealth --- Polish-Lithuanian Commonwealth --- Polish People's Republic --- Polish Republic --- Poljska --- Pólland --- Pollando --- P'olland --- Pologne --- Polóña --- Poloni --- Polonia --- Poloniako Errepublika --- Polonie --- Polonya --- Polonyah --- Polonye --- Poloonya --- Polòy --- Polşa --- Polşa Respublikası --- Polsca --- Polʹsha --- Polʹsha Mastor --- Polʹshæ --- Polʹshæĭy Respublikæ --- Polʹshcha --- Polsh --- Polʹshin Orn --- Polʹsho --- Polska --- Polská republika --- Polska Rzeczpospolita Ludowa --- Polʹskai͡a Narodnai͡a Respublika --- Polskas --- Polsko --- Pòlskô Repùblika --- Pol'šu --- Poola --- Poola Vabariik --- Poyln --- Ppolsŭkka --- PRL --- Pulandia --- Pulógna --- Puluña --- Puoleja --- Puolejis Republika --- Repubblica di Polonia --- Republic of Poland --- República de Polonia --- Republica de Polsca --- Republiek van Pole --- Republik Pole --- Republik Polen --- Republika Poljska --- Republika Polsha --- Republiḳat Polin --- Republikken Polen --- République de Pologne --- République populaire de Pologne --- Repúbrica de Poloña --- Rėspublika Polʹshcha --- Respubliko Pollando --- Ripablik kya Bupoolo --- Ripublik Pulandia --- Ripublika Puluña --- Rzeczpospolita Polska --- Tavakuairetã Polóña --- T͡Sarstvo Polʹskoe --- Warsaw (Duchy) --- Yn Pholynn --- Europe