Goods follow bytes

DIW Econ Economic Bulletin, No. 2

Most of the public and academic debate on the economic effects of Information- and Communication Technologies (ICT) focuses on the implications of these technologies for productivity and employment growth. Recent research by DIW econ indicates that this, however, is only part of the story. ICT may additionally facilitate physical trade in goods and products across national borders. In doing so, investment in ICT could provide a suitable policy tool to deepen integration within the EU Single Market and advance some of the major economic benefits it provides. This bulletin will describe how the relationship between e-business and trade has been determined empirically and what its implications are in practice.

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