Impact of the Prevailing Internet on International Trade in Asia

Abstract: This article provides empirical evidence for the relationship (1) between the prevailing Internet and international trade and (2) between the prevailing Internet and economic growth in Asian countries. The empirical results show that Internet promotes international trade both in developed countries and developing Asian countries; however, the effect is larger in Asian countries. The Internet can increase economic international trade; on the other hand, it has not necessarily been linked to economic growth. If countries seek to enhance international trade and economic growth, they need to implement specific policies that facilitate investment in information and communications technologies (ICT) to encourage efficient and effective economic growth. A digital revolution can form the foundation of a sustainable global economy. It is important to respond to this opportunity.