Service Export Sensitivity to Internet Adoption: Evidence From Dynamic Panel Data Analysis

Walid Chatti, Haitham Khoj


This study aims to examine the causal linkages relating service exports to internet penetration for 116 countries over the period 2000-2017. Taking into account a wide panel of countries, we apply 2-Step GMM methodology for dynamic panel data models. The results show a bi-directional causality relating service exports to internet adoption for developed countries. For the global panel and developing countries, we find those same results attest a positive relationship between the internet adoption and service exports, but in the opposite way; the impact is very low and not significant. Regarding developing countries, despite the fact that internet positively affects service exports, it is considered less efficient than in developed countries.

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Research in World Economy
ISSN 1923-3981(Print)ISSN 1923-399X(Online)


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