The Effect of Broadband on European Union Trade: A Regional Spatial Approach

19 Pages Posted: 16 Nov 2018

See all articles by Javier Barbero

Javier Barbero

Universidad Autónoma de Madrid

Ernesto Rodriguez‐Crespo

Universidad Autónoma de Madrid

Date Written: November 2018

Abstract

The positive effect of information and communication technologies (ICT) on trade between countries has been widely studied in the literature, but how ICT impacts regional trade is limited due to the lack of regional trade data. In this paper, we test whether broadband, as a proxy for ICT, increases bilateral trade at the regional level in Europe. We use a novel regional trade database of European Union regions and estimate an origin–destination flow gravity model for 2007 and 2010, accounting for spatial dependence among trade flows. Our results indicate that broadband is positive and significant in explaining trade patterns between European regions during both time periods.

Keywords: European Union, information and communication technologies, trade

Suggested Citation

Barbero, Javier and Rodriguez‐Crespo, Ernesto, The Effect of Broadband on European Union Trade: A Regional Spatial Approach (November 2018). The World Economy, Vol. 41, Issue 11, pp. 2895-2913, 2018, Available at SSRN: https://ssrn.com/abstract=3285412 or http://dx.doi.org/10.1111/twec.12723

Javier Barbero (Contact Author)

Universidad Autónoma de Madrid ( email )

Campus Cantoblanco
C/Kelsen, 1
Madrid, Madrid 28049
Spain

Ernesto Rodriguez‐Crespo

Universidad Autónoma de Madrid

Campus Cantoblanco
C/Kelsen, 1
Madrid, Madrid 28049
Spain

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