How does Digitalization Affect Trade in Goods and Services? Evidence from G20 Countries

Zi Hui Yin () and Chang Hwan Choi ()
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Zi Hui Yin: Hunan University of Technology
Chang Hwan Choi: Dankook University

Journal of the Knowledge Economy, 2025, vol. 16, issue 1, No 126, 3614-3638

Abstract: Abstract This study analyzes the impact of digitalization on the trade of goods and services in a gravity model. By using panel data of the Group of Twenty (G20) countries for 2005–2019, we find that (1) digitalization has a more positive effect on trade in services than on trade in goods; (2) digitalization is more likely to have a positive impact on exports, especially service exports rather than imports; (3) digitalization in high-income countries tends to have a positive effect on trade in services rather than trade in goods, whereas the use of mobile phones in middle-income countries has a promotion effect on the export of services. To promote trade volumes, G20 countries should increase investment in the development of digital technologies and reduce barriers to digital trade.

Keywords: Digitalization; International trade; Trade in goods; Trade in services; Digital Economy (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02029-1

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