Role of E-commerce in Foreign Trade Promotion: Some Evidence from Pakistan

Abstract

This study scrutinizes facts relating to the empirical relevance between e-commerce and foreign trade in Pakistan. For the purpose of analysis quarterly based time series data (1998Q1-2011Q4) was considered. Number of internet connections (proxy for e-commerce) was taken as exogenous variable. While foreign trade was endogenous variable of the model. Study empirically proves that with the increase in internet facility foreign trade has greatly increased.

Key Words: E-commerce, foreign trade, internet connections, Pakistan.