Information and Communications Technology and Goods Export Performance: Evidence for Cambodia
Keywords:
Cambodia, ICT, Export Performance, Panel DataAbstract
This paper empirically examines the impact of ICT on Cambodia’s goods export performance. ICT proxied by broadband, mobile phone and fixed phone penetrations, as well as the Internet use is introduced into the augmented gravity model with a panel data set from 1996 to 2017. Due to high multicollinearity among the included variables, each ICT variable is introduced into the model one by one. Estimation is carried out using the Hausman-Taylor method, which reduces or removes the correlation between the composite error terms and the included variables. ICT variables are found to be positively associated with Cambodia’s goods exports. Based on the results, the Royal Government should give a high priority to further develop ICT infrastructure and continue to promote ICT uses in enhancing the competitiveness of Cambodia. Implications from this study, in particular the important roles of ICT in enhancing export performance, are of vital relevance to other developing countries, including Thailand where ICT infrastructure development and uses still need to be further enhanced and promoted to reap the full benefits of ICT in the age of an increasingly digitalizing world.
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