AI and International Trade

Avi Goldfarb and Daniel Trefler

No 24254, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper explores the international dimensions of the economics of artificial intelligence. Trade theory emphasizes the roles of scale, competition, and knowledge creation and knowledge diffusion as fundamental to comparative advantage. We explore key features of AI with respect to these dimensions and describe the features of an appropriate model of international trade in the context of AI. We then discuss policy implications with respect to investments in research, and behind-the-border regulations such as privacy, data localization, standards, and competition. We conclude by emphasizing that there is still much to learn before we have a comprehensive understanding of how AI will affect trade.

JEL-codes: F1 O33 (search for similar items in EconPapers)
Date: 2018-01
New Economics Papers: this item is included in nep-big and nep-int
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Citations: View citations in EconPapers (22)

Published as Artificial Intelligence and International Trade , Avi Goldfarb, Daniel Trefler. in The Economics of Artificial Intelligence: An Agenda , Agrawal, Gans, and Goldfarb. 2019

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