Research paper on Website Premiums for Extensive Margins of International Firm Activities: Evidence from 34 Countries for SMEs

Description

Title: Website Premiums for Extensive Margins of International Firm Activities: Evidence from 34 Countries for SMEs

Abstract: Using firm-level data from the Flash Eurobarometer 421 survey conducted in 34 European countries in June 2015, this paper examines the relationship between having a website and international firm activities among small and medium-sized enterprises (SMEs). We find that firms with a web presence are more likely to export, import, engage in research and development cooperation with international partners, work as subcontractors for firms from other countries, use firms from other countries as subcontractors, and engage in foreign direct investments, both within and outside the European Union. After controlling for firm size, country, and economic activity sector, the estimated website premiums are statistically highly significant. Moreover, the size of these premia is considered to be substantial. Typically, internationally active businesses have a website.

Keywords: Using firm-level data from the Flash Eurobarometer 421 survey conducted in 34 European countries in June 2015, this paper examines the relationship between having a website and international firm activities among small and medium-sized enterprises (SMEs). We find that firms with a web presence are more likely to export, import, engage in research and development cooperation with international partners, work as subcontractors for firms from other countries, use firms from other countries as subcontractors, and engage in foreign direct investments, both within and outside the European Union. After controlling for firm size, country, and economic activity sector, the estimated website premiums are statistically highly significant. Moreover, the size of these premia is considered to be substantial. Typically, internationally active businesses have a website.

Paper Quality: SCOPUS / Web of Science Level Research Paper

Subject: Economics

Writer Experience: 20+ Years

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