Internet and International Trade in Services

The aim of this research paper is to look into empirical evidence to determine the impact of the internet upon the international service trade in the Organization of the Islamic Cooperation (OIC) over the period of 1990 - 2011. To measure the impact of the Internet upon international service trade, we apply the method of unbalanced panel data and modified gravity model. Results reveal that during the investigation period, the Internet has had a positive and significant effect on the service trade of OIC. Furthermore, there is a positive relation among service trade and GDP, financial depth and population.