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Internet and firms’ exports and imports

Firm level evidence from China

Bibliographic Data

ID21543417
AuthorsBing Li (0000-0002-0238-834X, Lingnan College Sun Yat‐sen University Guangzhou China), Linyue Li (0000-0003-2690-7623, School of International Trade and Economics Central University of Finance and Economics Beijing China, corresponding author), Rou Li (0000-0001-7266-6213, School of Economics GuangXi Minzu University Nanning City China), Yunsong Yue (China Academic of Information and Communication Technology Beijing China)
Year2023
Volume46
Issue3
Pages835-872
Publication date2023-03-01
Open AccessYes
TypeARTICLE
VenueWorld Economy (JOURNAL)
Journal identifiersISSN: 0378-5920 • E-ISSN: 1467-9701
PublisherWiley (PUBLISHER • GB)
DOI10.1111/twec.13310
OpenAlexW4283316125
LanguageEN
Citations received4
References cited30

This study investigates the impact of the Internet on Chinese firms' export and import performance by using China's industrial enterprise and customs data and adopting a propensity score matching difference‐in‐differences method (PSM‐DID). The empirical results show that utilising the Internet has positive effects on firms' exports and imports; however, the effects are mainly concentrated in the first 2–3 years. The positive effect on exports is larger than on domestic sales; thus, the Internet increases export intensity. Further, we investigate the effects of the Internet on the three margins of Chinese exports. First, we borrow the multi‐product multi‐destination firm exporting theory developed by Bernard et al. ( The Quarterly Journal of Economics , 126, 2011, 1271) and find that the Internet improves not only the extensive margin between firms, but also the within‐firm extensive margin. We then investigate the effects of the Internet on product quality and find that the Internet has a negative effect since Chinese firms export more products to developing countries than to other countries, where the requirements for product quality are relatively low. Our findings empirically justify the ‘Internet Plus’ strategy proposed by the Chinese government with regard to international trade

Business · China · Economics · Export performance · International economics · International trade · Propensity score matching · The Internet · Global trade and economics · International Business and FDI · International Development and Aid

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Citations per year2
Citation span2024 - 2026 (3)
Highly citedNo

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