THE DYNAMICS OF TRADE PATTERNS IN THE INTERNET ERA.

The effects of the privatization and commercialization of Internet on world trade are often debated but few rigorous conclusions emerge. Such conclusions have not been based on in-depth quantitative research and trade data analysis. A predominant expectation is that the volume of trade will increase significantly for all countries irrespective of the level of development. Some hold the cynical view that trading opportunities will improve only for advanced economies and developing countries will be further marginalized. Our results suggest that, from the export perspective, middle-income and developing countries have demonstrated a shift in trading patterns and developed countries did not experience any significant increase in exports. Indeed, it may be argued that the Internet may very well be the equalizer that may spur the economic growth of the developing countries. [ABSTRACT FROM AUTHOR]