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Abstract:
This paper uses country-level Information and Communication Technology (ICT) data and international trade to examine whether or not ICT development can be a deterministic element to promote international trade. Empirical results show that ICT development causes trade. The prevalence of Internet has overcome many barriers by reducing time and the disadvantage of location and promoting efficiency in many fields. ICT positively affect productivity through ICT-leveraged innovations and ICT-induced externalities. ICT can play a vital role in the pathway to international trade and economic growth. However, these could cause inequality. Using the Gini coefficient as inequality in the economy tells us ICT development causes inequality. ICT skill does not significantly shrink inequality. Each country in some cases should consider this fact for sound economic development. On the other hand, exchange rate fluctuations and English proficiency are both not significantly related with international trade. English is an important element to promote businesses in many aspects; however, recent data show us that it is not a deterministic element to promote international trade. Other factors except English proficiency many have impacts on international trade.
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