AI Readiness and Exports of Digitally Deliverable Services: Panel Evidence from 151 Countries (2010–2022)

Ahsan Habib and Md Shahin Kadir
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Ahsan Habib: School of Business, China West Normal University, Nanchong, Sichuan, China.
Md Shahin Kadir: School of Business, China West Normal University, Nanchong, Sichuan, China.

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Abstract: Artificial intelligence (AI) is increasingly viewed as a general-purpose technology that can reshape countries' trade patterns, especially in services that can be produced and delivered digitally. This study examines whether national AI readiness is associated with greater exports of digitally deliverable services (DDS) and with stronger specialization in DDS. Using a panel of 151 countries over 2010–2022, we combine UNCTAD DDS export data with an AI readiness index (0–100) that captures infrastructure, human capital, innovation capacity, data and governance. We estimate two-way fixed-effects models with country and year fixed effects and clustered standard errors, controlling for income, population, and selected digital regulation indicators. The results show a robust positive association between AI readiness and DDS exports: in the preferred specification, a one-point increase in AI readiness is associated with a 0.032 increase in log DDS exports (about 3.3%), with similar magnitudes across alternative specifications and an instrumental-variable robustness check. Heterogeneity tests indicate that the AI readiness–DDS relationship is stronger for developing economies. Additional specifications using DDS revealed comparative advantage suggest that improvements in AI readiness are also linked to shifts in specialization toward digital services. The findings imply that investments in AI-related capabilities can support participation in high-value digital services trade, particularly for developing countries.

Date: 2026-02-19
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Published in Asian Journal of Economics, Finance and Management , 2026, 8 (1), pp.214-227

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