Open Access Journal Article

Cloud computing and extensive margins of exports: Evidence for manufacturing firms from 27 EU countries

by Joachim Wagner a,* orcid
a
Leuphana University Lueneburg and Kiel Centre for Globalization, Lüneburg, Germany
*
Author to whom correspondence should be addressed.
JIE  2024 2(1):26; https://doi.org/10.58567/jie02010005
Received: 13 March 2024 / Accepted: 4 April 2024 / Published Online: 7 May 2024
View Full-Text
Download PDF

Abstract

The use of cloud computing by firms can be expected to go hand in hand with higher productivity, more innovations, and lower costs, and, therefore, should be positively related to export activities. Empirical evidence on the link between cloud computing and exports, however, is missing. This paper uses firm level data for manufacturing enterprises from the 27 member countries of the European Union taken from the Flash Eurobarometer 486 survey conducted in February – May 2020 to investigate this link. Applying standard parametric econometric models and a new machine-learning estimator, Kernel-Regularized Least Squares (KRLS), we find that firms which use cloud computing do more often export, do more often export to various destinations all over the world, and do export to more different destinations. The estimated cloud computing premium for extensive margins of exports is statistically highly significant after controlling for firm size, firm age, patents, and country. Furthermore, the size of this premium can be considered to be large. Extensive margins of exports and the use of cloud computing are positively related.

Keywords: Cloud computing; exports; firm level data; Flash Eurobarometer 486; kernel-regularized least squares (KRLS);
Copyright: © 2024 by Wagner. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

Share and Cite

ACS Style
Wagner, J. Cloud computing and extensive margins of exports: Evidence for manufacturing firms from 27 EU countries. Journal of Information Economics, 2024, 2, 26. https://doi.org/10.58567/jie02010005
AMA Style
Wagner J. Cloud computing and extensive margins of exports: Evidence for manufacturing firms from 27 EU countries. Journal of Information Economics; 2024, 2(1):26. https://doi.org/10.58567/jie02010005
Chicago/Turabian Style
Wagner, Joachim 2024. "Cloud computing and extensive margins of exports: Evidence for manufacturing firms from 27 EU countries" Journal of Information Economics 2, no.1:26. https://doi.org/10.58567/jie02010005
APA style
Wagner, J. (2024). Cloud computing and extensive margins of exports: Evidence for manufacturing firms from 27 EU countries. Journal of Information Economics, 2(1), 26. https://doi.org/10.58567/jie02010005

Article Metrics

Article Access Statistics

References

  1. BERNARD, A.B., JENSEN, J. B. (1995). Exporters, Jobs, and Wages in U.S. Manufacturing: 1976-1987. Brookings Papers on Economic Activity: Microeconomics 67-119. https://doi.org/10.2307/2534772
  2. BERNARD, A.B., JENSEN, J. B. (1999). Exceptional exporter performance: cause, effect, or both? Journal of International Economics 47 (1), 1-25. https://doi.org/10.1016/S0022-1996(98)00027-0
  3. CHEN, M., VOLPE MARTINCUS, C. (2022). Digital Technologies and Globalization: A Survey of Research and Policy Applications. IDB Inter-American Development Bank Discussion Paper No. IDB-DP-00933.
  4. DESTEFANO,T., KNELLER, R., TIMMIS, J. (2024). Cloud Computing and Firm Growth. Review of Economics and Statistics (in press). https://doi.org/10.1162/rest_a_01393
  5. FERENCZ, J., LOPEZ-GONZALEZ, J. OLIVAN GARCIA, I. (2022). Artificial Intelligence and International Trade: Some Preliminary Implications. OECD Trade Policy Paper 260. https://doi.org/10.1787/13212d3e-en
  6. FERWERDA, J., HAINMUELLER, J., HAZLETT, J. C. (2017). Kernel-Based Regularized Least Squares in R (KRLS) and Stata (krls). Journal of Statistical Software 79 (3), 1-26. https://doi.org/10.18637/jss.v079.i03
  7. GOLDFARB, A., TREFLER, D. (2018). AI and International Trade. National Bureau of Economic Research Working Paper 24254. https://doi.org/10.3386/w24254
  8. HAINMUELLER, J., HAZLETT, J. (2014). Kernel Regularized Least Squares: Reducing Misspecification Bias with a Flexible and Interpretable Machine Learning Approach. Political Analysis 22, 143-168 DOI: https://doi.org/10.1093/pan/mpt019
  9. HAUCAP, J., FRITZ, D., THORWARTH, S. (2022). The Economic Impact of Cloud Computing in Europe. Düsseldorf: DICE Consult.
  10. MELTZERr, J.P. (2018). The impact of artificial intelligence on international trade. Center for Technology Innovation at Brookings.
  11. MINVIEL, J-J., BEN BOUHENI, F. (2022). The impact of research and development (R&D) on economic growth; new evidence from kernel-based regularized least squares. The Journal of Risk Finance 23 (5), 583-604. https://doi.org/10.1108/JRF-11-2021-0177
  12. WAGNER, J. (2007). Exports and Productivity: A survey of the evidence from firm level data. The World Economy 30 (1), 5-32. https://doi.org/10.1111/j.1467-9701.2007.00872.x
  13. WAGNER, J. (2022). Website Premia for Extendive Margins of International Firm Activities: Evidence for SMEs from 34 Countries. Economies 10:250. https://doi.org/10.3390/economies10100250
  14. WAGNER, J. (2023). Big Data Analytics and Exports – Evidence for Manufacturing Firms from 27 EU Countries. Kiel Centre for Globalization KCG Working Paper No. 29. https://hdl.handle.net/10419/283390
  15. WAGNER, J. (2024a). Robots and the Extensive Margins of Exports – Evidence for Manufacturing Firms from 27 EU Countries. Kiel Centre for Globalization KCG Working Paper No. 33. https://hdl.handle.net/10419/283529
  16. WAGNER, J. (2024b). Estimation of empirical models for margins of exports with unknown non-linear functional forms: A Kernel-Regularized Least Squares (KRLS) approach. Kiel Centre for Globalization KCG Working Paper No. 32. https://hdl.handle.net/10419/283517