Technology-induced trade shocks? Evidence from broadband expansion in France

• 成果类型: Article
• 署名作者: Malgouyres, Clement; Mayer, Thierry; Mazet-Sonilhac, Clement
• 署名单位: Paris School of Economics; IZA Institute Labor Economics; Institut d'Etudes Politiques Paris (Sciences Po); European Central Bank; Bank of France
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2021.103520
• 发表日期: 2021
• 关键词: INTERNET; TRADE; imports; consumer welfare

摘要

In this paper, we document the presence of technology-induced trade in France between 1997 and 2007 and assess its impact on consumer welfare. We use the staggered roll-out of broadband internet to estimate its causal effect on the importing behavior of affected firms. Using an event-study design, we find that broadband expansion increases firm-level imports by around 25%. The effect on domestic sales is positive but smaller, suggesting that the impact on trade is not limited to a scale effect. We further find that the sub-extensive margin (number of products and sourcing countries per firm) is the main channel of adjustment. Finally, we develop a model where firms optimize over their import strategy which yields a sufficient statistics formula for the quantification of the effects of broadband on consumer welfare. Interpreted within this model, our reduced-form estimates imply that broadband internet reduced the consumer price index by 2.22% and that the import-channel, i.e. the enhanced access to foreign goods that is allowed by broadband, accounts for about 33% of that effect. (c) 2021 Elsevier B.V. All rights reserved.