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Journal of Economic Integration 2020 September;35(3) :519-558.
DOI: https://doi.org/10.11130/jei.2020.35.3.519
Effect of the Internet on Services Export Diversification
Sèna Kimm Gnangnon 
World Trade Organization, Switzerland
Corresponding Author: Sèna Kimm Gnangnon ,Email: SenaKimm.Gnangnon@wto.org
Copyright ©2020 Journal of Economic Integration
ABSTRACT
his study empirically examines the effect of Internet access on services export diversification. A panel dataset containing 131 countries is analyzed over 1995-2014 and shows that greater access to the Internet is positively associated with services export diversification.This outcome applies to both high-income and developing countries, and particularly to least developed countries (LDCs) among developing countries. Additionally, the effect of Internet access on services export product diversification translates to countries’ level of innovation, merchandise exports, including export product concentration and size of foreign direct investment (FDI) inflows.These findings highlight the need for developing digital infrastructure and regulations that would facilitate access to the Internet, particularly in developing countries.The international community must focus on developing countries, particularly LDCs, by helping them to develop the requisite digital infrastructure and regulations to better participate in international trade, especially through greater series export diversification.

JEL Classification
F14: Empirical Studies of Trade
O11: Macroeconomic Analyses of Economic Development
O14: Industrialization; Manufacturing and Service Industries; Choice of Technology
O31: Innovation and Invention: Processes and Incentives
Keywords: Internet access | Services export diversification | Innovation | Merchandise exports | Export product diversification | Foreign Direct Investment inflows
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Product Standards and Export Diversification  2015 June;30(2)
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