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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper Series in Economics ; No. 427

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Empirical Analysis ; Empirical Studies of Trade
• Subject: Cloud computing ; exports ; firm level data ; Flash Eurobarometer 486 ; kernelregularized least squares (KRLS)

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wagner, Joachim
• Event: Veröffentlichung
• (who): Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
• (where): Lüneburg
• (when): 2024

Further information

• Handle: http://hdl.handle.net/10419/283530
• Last update: 10.03.2025, 11:44 AM CET