The impact of information and communication technology on international trade in fruit and vegetables in APEC

Author(s)
Chung, Kit Chi
Fleming, Euan
Fleming, Pauline A
Publication Date
2013
Abstract
The global food marketing network is being constantly reshaped, providing opportunities and challenges for information and communication technology (ICT) to develop and improve international trade in food products. A gravity model of international trade is employed to see if ICT positively affects bilateral international trade in fruit and vegetables between member Asia-Pacific Economic Cooperation (APEC) economies. We examine if the use of the Internet, mobile telephones, and fixed telephone lines determine the value of bilateral trade. Empirical results for the importance of ICT differ markedly between importing activities and exporting activities in the international value chain of fruit and vegetables in APEC countries. Changes in ICT levels in the import sector of the value chain have no effect on international trade in fruit and vegetables. However, in the export sector, growth in some ICT products has significant positive effects on trade in fruit and vegetables between APEC countries. Surprisingly, the strongest impact was discerned for the traditional form of ICT, fixed telephone lines, but this impact probably reflects the fact that fixed telephone lines are a proxy variable for the general level of infrastructure development. Of the two digital ICTs, mobile telephony and the Internet, only the Internet had a significant impact on trade levels. The further development of the Internet and its diffusion should make exporters in APEC countries more competitive in the fruit and vegetables value chain, and boost their trade values in these products.
Citation
Asian-Pacific Economic Literature, 27(2), p. 117-130
ISSN
1467-8411
0818-9935
Link
Publisher
Wiley-Blackwell Publishing Asia
Title
The impact of information and communication technology on international trade in fruit and vegetables in APEC
Type of document
Journal Article
Entity Type
Publication

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