In the paper "Inclusive Trade Through Online Presence", Emmanuel Orkoh and myself examine whether online presence contributes to inclusiveness by helping firms that traditionally struggle to enter export markets do so. Using the World Bank’s enterprise survey data covering more than 180,000 enterprises from 154 countries, we find that being online has a positive and statistically significant effect on the probability of a firm becoming an exporter, increasing this probability by an average of 8 percentage points. There is further evidence that online presence increases the level of a firm’s exports by 37%. We also find supporting evidence that online presence is linked with an increase in the likelihood of foreign market entry for enterprises owned and managed by women, firms with a majority female workforce, small and medium-sized enterprises, firms from lower income countries and developing regions of the world, as well as firms in the services sector. These results have accounted for possible endogeneity of online presence, self-selection into exporting, and industry and country-year heterogeneity. They suggest that measures to promote digitalization and improve the business environment can offer effective ways of fostering more inclusive trade.
Steps to reproduce
This folder provides instructions to replicate the results of "Inclusive Trade Through Online Presence" by Emmanuel Orkoh and Robert Teh. The files included in this package are: I. README.txt II. do files: folder with Stata do-files. The following five do files are included in this folder 0. directory 1. online.do 2. prepare_data.do 3. run regressions.do 4. figures.do III. data: folder with Stata data files. IV. tables_figures: folder where all the tables and figures produced during the replication will be placed. INSTRUCTIONS Save the contents of the folder "Online_revised" to your target drive. Before running any do file, please open the directory do file and change the directory path (in the first line) to match the target drive where the folder "Online_revised" was saved. After completing this first step, the easiest way to replicate the results of the paper is to execute the "online.do" file. This is especially useful since the three do files that it invokes are interrelated and later do files require results generated by earlier do files. The following steps will then be executed: • creation of the database "online.dta" to be used in the analysis; • running the main regressions and saving the results to the tables_figures folder; • generating the figures which appear in the paper and which will be stored in the tables_figures folder.