Year of Award

2014

Document Type

Thesis

Degree Type

Master of Arts (MA)

Degree Name

Economics

Department or School/College

Department of Economics

Committee Chair

Derek Kellenberg

Commitee Members

David Firth, Richard Erb, Douglas Dalenberg

Keywords

information and communication technology, ICT, gravity model, steel, international trade

Publisher

University of Montana

Abstract

The advances in Information and Communication Technology (ICT) over the last 20 years, particularly proliferation of the Internet, fixed-telephones, and mobile phones, have significantly reshaped the way modern firms do their business. The economic literature suggests that ICT could be a potential trade-enabler, given its ability to reduce costs of search and communication between trade partners. This research intends to examine whether ICT affects countries’ capabilities to export steel and its articles. To estimate the impacts of the Internet, mobile phones, and fixed-telephones on bilateral trade flows in the steel industry, I apply various gravity model specifications, including those capturing multilateral resistance terms. Three different panels for total exports, exports of steel, and exports of articles of steel were analyzed over the period 2001-2012. The study reveals a positive influence of the Internet and mobile phones on exports of steel and its articles. Moreover, network effects of the Internet are observed in articles of steel. In addition, this study reviews the history and current state of the steel industry and reports a firm-level case study on how ICTs are being deployed at a global steel pipe manufacturer to boost its international sales.

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© Copyright 2014 Volodymyr Shemayev