Can Online Markets Make Trade More Inclusive?
Lendle, Andreas; Olarreaga, Marcelo | May 2017
Technology made available by online markets has significantly reduced the cost of entry into international markets for small and medium sized firms, who can now reach far away consumers and create global reputation as a seller at very low costs. Empirical evidence using data from eBay sellers shows that a large share of online firms exports, even though they are on average much smaller than traditional offline firms. We show that in a world where income inequality is driven by an uneven distribution of capital rents, online markets help to reduce income inequality by providing smaller firms access to international markets.
CitationLendle, Andreas; Olarreaga, Marcelo. 2017. Can Online Markets Make Trade More Inclusive?. © Asian Development Bank Institute. http://hdl.handle.net/11540/7158.
Trade And Development
Large Scale Industry
Commerce and Industry
Small Scale Industry
Medium Scale Industry
Trade data interchange
Access to markets
Supply and demand
Financial planning industry
Wages and labor productivity
Business enterprisesShow allCollapse