Information and Communication Technology Development and Foreign Trade in the Region of South-East Europe

Abstract This paper provides an analysis of the influence of Information and Communication Technology (ICT) infrastructure, usage and skills on the export and import of goods and services in the region of South-East Europe (SEE) by applying gravity models to bilateral trade flows through the panel data analysis. The results show that GDP per capita and Internet usage have a significant positive impact on import, and in addition, the digital infrastructure and digital skills have a positive, but small impact on export. Distance has a negative impact on trade. These countries faced relatively poor development and usage of the ICT sector, which indicates unexplored potential which could be used to improve international trade if exploited by businesses, government and households.