DP15219 Informational Barriers to Market Access: Experimental Evidence from Liberian Firms

Author(s):	Golvine De Rochambeau, Jonas Hjort, Vinayak Iyer
Publication Date:	August 2020
Keyword(s):
JEL(s):	D2, D83, O1, O25
Programme Areas:	Development Economics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=15219

Evidence suggests that firms in poor countries stagnate because they cannot access growth-conducive markets. We hypothesize that overlooked heterogeneity in marketing ability distorts market access. To investigate, we gave a random subset of Liberian firms vouchers for a week-long program that teaches how to sell to corporations, governments, and other large buyers. Firms that participate win about three times as many contracts, but only firms with access to the Internet benefit. We use a simple model and variation in online and offline demand to show evidence that this is because ICT dampens traditional information frictions, but not marketing barriers.