Can Online Markets Make Trade More Inclusive?
Lendle, Andreas; Olarreaga, Marcelo | May 2017
Abstract
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.
Citation
Lendle, Andreas; Olarreaga, Marcelo. 2017. Can Online Markets Make Trade More Inclusive?. © Asian Development Bank Institute. http://hdl.handle.net/11540/7192.Keywords
Trade And Development
Large Scale Industry
Regional Trade
Commerce and Industry
Trade Negotiations
Merchandise Trade
Domestic Trade
Computer Industry
Trade Regulation
Telecommunication Companies
Rural Rehabilitation
Biotechnology
Interindustry Trade
Industrial Policy
Industrial Investment
Industrial Development
Small Scale Industry
Medium Scale Industry
Local Industry
Transport Infrastructure
Trade regulations
Telecommunications Industry
Computers
Trade data interchange
Access to markets
Rural development
Unfair competition
Supply and demand
Energy policy
Developing countries
Industrial organizations
Creative industries
Investment banking
Microfinance
Financial planning industry
Infrastructure
Manufactures
Business failures
Wages and labor productivity
Microelectronics industry
Electronic industries
Digital electronics
Microelectronics
Electronic commerce
Business enterprises
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