Proceedings of The 4th International Conference on Research in Business, Management and Economics
ICT and Trade Performances of Central and Eastern European Countrie
Dr. Tinatin Akhvlediani
The paper examines the effects of Information Communications Technology (ICT) and general technological environment expressed in knowledge economy on trade performances of Central and Eastern European Countries (CEEC). The analysis explicitly studies ICT effects on both exports and imports of CEEC and distinguishes among the different income countries across their trading partners. Empirical results derived from the pseudo Poisson Maximum Likelihood (PPML) estimator find that relative differences in the factor endowments explain well the patterns and destinations of the CEEC exports and imports. Including the ICT variables and proxies for the knowledge economy in the model further strengthens the effects and outlines that the higher ICT use, stronger ICT infrastructure and well developed knowledge economy increase exports of CEEC. The ICT effects are less robust on the CEEC imports, which so far are mostly explained by the differences in the factor endowments and income levels of the trade partners.
Keywords: ICT, Central and Eastern Europe, international trade, technological progress, knowledge economy.