Help or hype?

International development literature suggests that Internet marketing has the potential to play an important role in rural development. Despite the abundant theoretical support for incorporating Internet marketing into development strategies, there is little empirical evidence regarding whether Internet marketing actually generates development. This thesis helps fill this gap in the literature by investigating whether one Internet marketing application associated with development, competitive-online auctions (COAs), contributes to growth and poverty reduction. An analysis of price premiums earned in Latin American specialty coffee auctions and interviews with participating coffee farmers suggest that this application's strength lies in its ability to catalyze development; it provides the foundation from which farmers can pursue above-market prices, access new markets, and improve local living conditions. However, evidence also emphasizes that COAs do not inevitably advance development goals because their ability to do so is contingent on external factors, including the actions taken by individual farmers.