Common Effects of ICT, Financial Development of Internet, Banking Sector Development, and Abuse of International Culture on International Trade

The rapid growth of Information Technology (IT) and the development of communicational networks have opened a new window to financial sectors and markets over the recent years. The advent of modern information exchange and processing techniques, and the creation of large information databases have improved efficiency and productivity, fast communications, and low operational costs of financial institutions. As the main factor bringing superiority in competitive financial markets, the mentioned techniques have changed the financial sector outlook. Information and communications technology (ICT) has revolutionized banking, so current banking is not applicable without using this technology. Banking has become electronic due to using ICT in financial affairs. Berger explains that IT has been increasingly used in service industries, particularly in the banking industry to provide investment and information exchange security, online banking, and e-payment by using IT. Financial organizations use ICT to provide high-quality services more simply. The extant study was conducted to examine the common effects of ICT, financial development of the internet, banking sector development, and abuse of international culture on the international trade in selected developed countries. Model estimation was done based on the PSTR method from 2000 to 2020. According to the results of model estimation indicated in the linear part of the model (first regime), financial development of the internet, baking development, abuse of international culture of trade, and the real exchange rate had a positive and significant effect on the international trade volume at the confidence level of 95%, while ICT development had a positive and significant effect on the international trade volume at the confidence level of 90%. This implies the variables mentioned above could improve international trade in selected countries in the present research.

Common Effects of ICT, Financial Development of Internet, Banking Sector Development, and Abuse of International Culture on International Trade Keywords:

Information and Communications Technology (ICT) , Financial Development of Internet , Banking Sector Development , Abuse of International Culture , International Trade