Abstract
The Internet has radically changed the business world and become increasingly central to our economic life. As the opportunities created by the Internet is growing rapidly, new trading companies sprung up overnight in a similar pace. For the case of manufacturing firms in developing countries however, the awareness campaign of the advantages of the Internet usage is still undervalued. As for Madagascar, the country has been saddled with timid access to internet, added with the high cost of the Internet, which seem to occlude firms from reaping the benefits.
This study empirically analyzes the relationship between the Internet and manufacturing firm’s exports, using data from the World Bank. Deploying an OLS model to examine the connection, the result has shown a positive and significant relationship between the access to the Internet and manufacturing firm’s export in Madagascar. Besides, the results are robust, it is more pronounced when firms export to developed countries than developing countries.
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