The Role of Internet Adoption on Trade within Asian Countries Plus People’s Republic of China
The Internet stimulates trade. This paper estimates the effect of Internetadoption on trade promoting international
trade between ASEAN and People’s Republic of China. The article uses five-year cross-section data from 2011 to2015 for
the sample-selection.We study the effect of the Internet on trade by using the gravity equation with the Internet.The results
show that Internet affects tradepositively. Specifically, our results imply that a 10 percent increase in the Internet users
would have led to about 3 percent increase in international trade volume.
Index terms - Internet; international trade, gravity model, cross-section data.