Impact of ICT on trade in different technology groups: analysis and implications

The link between ICT use and trade flows has been widely discussed in the literature. It has been argued that the use of ICT contributes to the fall of trade costs. The analysis presented identifies the role of a specific ICT variable, namely the extent of use of Internet by the business community, in international trade. The export flows between 40 countries (OECD countries plus Brazil, China, India, Indonesia, Russia and South Africa) are analyzed. The results are presented for different technology groups of products, from high-tech to low-tech. The relationship between the use of Internet and trade in ICT goods is also considered.