Approaches to Assessing the Level of Digitalization and Global E-commerce Policy Choices

Abstract

Digital technologies and their role in global economic development have been increasing the past two decades. Digitalization has changed many aspects of human society. It had a significant impact on business processes in international trade, reducing costs, increasing the value and speed of cross-border transactions. E-commerce is becoming the most important engine for economic growth. The article examines new digitalization trends in the context of the international trade development. Among the key trends caused by digitalization and affecting international trade, it highlights the following: 1) expanding of globally e-commerce sales and the world marketplaces turnover; 2) increasing the value of international trade in ICT goods and services, and digitally-deliverable services; 3) growth of world exports in services by mode 1 of supply, i.e. cross border supply. The problem of assessing the level of digitalization of the economy and its impact on trade is becoming more and more urgent. Many leading international organizations including OECD, WTO, IMF, UNCTAD are working on developing universal approaches to the formation of terminology in the field of digitalization of trade, measuring digital trade and classifying economic sectors depending on the level of digitalization. The study draws particular attention to these issues. The authors have systematized an extensive list of international indices. The first cluster includes indices characterizing the level of e-commerce markets development. The second cluster contains indices that assess the development of information and communication technologies. Finally, the third cluster of indices assesses penetration of digital technology into economy and life. Indices that assess digital trade policy measures were also examined

A Methodical Approach to Determining the Level of Development of Digital Trade in Global Markets

“…(Aboody, Lev, 2000), Aizenman J., and Noy I. (Aizenman, Noy, 2006), Barro R.J. (Barro, 2001), Chuang Y.C., and Hsu P.F. (Chuang, Hsu, 2004), which is a significant contribution to the current study.…”

“…(Chuang, Hsu, 2004), which is a significant contribution to the current study. Digitalization assessment and political dimensions are revealed in Aliev T. M., Ismagilova O. D., and Popova V. N. (Aliev, Ismagilova, Popova, 2020). In the work of Dziuba Yu.…”

Development and Influencing Factors of International Trade in Digitally Deliverable Services

“…Nicholson and Noonan ( 2017 ) identified “digitally deliverable” services in digitally enabled service categories and presented an upper-bound estimate of the percentage of digitally deliverable service exports. Aliev et al ( 2020 ) examine new digitalization trends in the context of international trade development and emphasize the importance of increasing the value of international trade in ICT goods and services and digitally deliverable services. Based on this, we use export flows of annual statistics on international trade in digitally deliverable services (lnexdigit), which are shown in millions of current United States dollars.…”