Does Neo-Schumpeterian economics matter?: An analysis of information and communication technology and international trade in ASEAN-5

In an innovative economy, technology change is the heart of economic growth. Trade is central to economic growth that creates a global trading system that is more open and reliable for all. The diffusion of information and communication technologies (ICT) has made the process of trading become faster and cheaper. ICT has intensely influenced the global economy and its usage has been connected to marketplace transformation and more robust international trade.The rise of technology intensity around the globe has increased competition for trade in the ASEAN-5 economies. Do ICT facilitate the exchange of products and services between individuals, businesses and groups to enhance the trade in ASEAN-5? The objective of this study is to examine the impacts of broadband, internet, telephone and mobile use on trade flows in ASEAN-5 using panel regression models for year 2000-2018. The findings suggest that broadband, telephone and mobile use serve as complementary roles to the internet usage to enhance trade activities.The study also shows that the dominant technology driver isinternet. This study demonstrates that Neo-Schumpeterian Economics is important to explain technology as an important element determining the characteristics of international trade flows and growth in ASEAN-5. To improve the trade activities in ASEAN-5, encouragement on ICT use across individuals, firms and public administrations should be supported to stimulate international trade.