Behzad Salmani - Associate Professor at Tabriz University, Faculty of Economics, Iran
Farhad Pourebrahim - Instructor at Maragheh University, Iran
Maryam Saremi - M.A Student of Economics at Tabriz University, Iran

This study has explored the effect of the Internet on international service trade in developing countries using the method of unbalanced panel data and modified gravity modelfrom 1990 to 2011. The obtained results showed that on the investigation period, The Internet has had a positive and significant effect on the service trade of developing countries. Furthermore, there is a positive relation among service trade and GDP, financial depth andpopulation

Service trade, Internet, gravity model, panel data