DP17318 Digital connectivity and firm participation in foreign markets: An exporter-based bilateral analysis
Orientul Mijlociu
This paper studies how bilateral digital connectivity resulting from telecommunications submarine cable (SMC) deployment affects firm participation in export markets. Based on a heterogeneous firm model and using an unbalanced panel of bilateral trade data across 48 countries during the period 1997-2014, we find that an SMC connection between two countries is associated with an increase in the number of bilateral exporters in developed countries, but also with a reduction in the number of
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