Analysis of the Role of ICT Infrastructure on the Philippine Bilateral Trade of Goods: A Gravity Model Approach

Date

6-2022

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Niño Alejandro Q. Manalo

Committee Member

Paul Joseph B. Ramirez, Ma. Angeles O. Catelo, Agham C. Cuevas

Restrictions

Restricted: Not available to the general public. Access is available only after consultation with author/thesis adviser and only to those bound by the confidentiality agreement.

Abstract

As globalization and digitalization become more pervasive, the role of the ICT infrastructure in reducing the geographical distance between trading countries, integrating the market, and facilitating more efficient and cost-effective communication and transaction become increasingly vital. As prior studies concluded, a well-developed and efficient ICT infrastructure has potential impacts on bilateral trade flows. In this study, the augmented gravity model of trade is used determining the role of ICT infrastructure on the Philippine bilateral trade in goods for periods 2007 to 2017. The significance of the effects of quantity and quality of ICT infrastructure on the Philippine bilateral exports and bilateral imports was determined using 308 observations. It was found that both ICT quantity and quality of subscriptions has a significant relationship with bilateral imports. Contrary to the general findings of other empirical studies, the ICT quantity in the Philippines has negative effects on its bilateral trade. While the effect of ICT quantity of the trading partners is consistent with other studies that have found a positive relationship between ICT and trade. Hence, this study found that the ICT quality is more important for the Philippines, while the quantity of ICT subscriptions matters most for its developed trading partners.

Language

English

LC Subject

Usages of trade, Infrastructure (Economics)--Management--Data processing

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2022 E2 M67

Document Type

Thesis

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