E-commerce and Exports in Europe: A Dynamic Panel Data Approach

Abstract

In this article, we investigate if the greater development of e-commerce affects exports. Furthermore, we consider how other aspects of information and communication technology, including e-government and the prevalence of internet use in the workforce, affect exports on the sector level. The system generalized method of moments was applied to estimate a dynamic exports model using panel data on 32 European countries in the period of 2009 to 2017. Our findings indicate that only e-commerce positively affects exports, particularly in the service and manufacturing sectors. The results imply that e-commerce development could be used as an export-enhancing policy instrument.

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