Understanding the Economic Impact of Digitalisation on Digital Trade: Evidence from APEC Economies

Digitalisation has significantly changed how international trade is being conducted, both via the use of digital platforms to facilitate the exchange of non-digital goods and services, as well as through the rise of digitally deliverable exports such as financial and administrative services, and mobile apps and content. Governments recognise the enormous opportunity presented by digital trade and have taken steps to create a global rules-based system to harness the opportunity.

Past research in APEC covered the overall economic benefits of digital trade rules on digital trade flows. However, increasing participation in the digital trade ecosystem also depends on the readiness of the domestic business environment, including businesses and consumers. This study explores the trends in digitalisation and digital trade, introduces a novel approach to identify the impact of digitalisation on digital trade flows through a study of APEC economies, and most importantly discusses how APEC policymakers can unlock the benefits of digitalisation.