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Abstract

This paper discusses some of the reasons why the Internet might have a positive effect on the international trade in agricultural and horticultural commodities between the United States and its partners. It provides some simple econometric tests which differentiate the export and import effects of Internet infrastructure and cost. It also shows that the effect may be dependent on product heterogeneity/perishability. Given the growth of the Internet over the past decade, coming to terms and measuring these effects is important to both producers and policymakers in considering the competitive impacts of this new technology.

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