On the effects of Internet development on China’s export

【Author】

PAN Jiadong;XIAO Wen

【Institution】

Economics Teaching and Research Department, Party School of Zhejiang Provincial Committee of C.P.C Zhejiang Institute of Administration;School of Economics Zhejiang University

【Abstract】

The fast development of Internet has great effects on China’s exports. This paper studies the mechanism how Internet development affects exports and uses data from 21 major export destinations to examine whether Internet has significant impacts on China’s export. It shows that: Internet affects exports mainly through the channel of export cost which includes information seeking cost, communication cost and production cost. Internet development of both developed and developing countries and regions has significant effects on China’s export, but the effects differ between developed countries and regions and developing countries and regions. The effect of Internet on China’s export to developed countries and regions is significantly positive, while the effect of Internet on China’s export to developing countries and regions is weak.

【Keywords】

the Internet;export trade;cost of production;information search cost;communication transaction cost

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