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Effects of digital transformation on international trade

Author

Listed:
  • Andrey Nikolaevich Spartak

    (Russian Market Research Institute (VNIKI); Russian Foreign Trade Academy, Moscow, Russia)

Abstract

The article considers central, integrative role of digitalization and related technologies in the Fourth Industrial Revolution. Digitalization in the world economy and international trade is rap- idly growing while digital space becomes the major field for global commerce. Effects of digital transformation on international trade are the following: (1) shifts in the structure and configuration of international trade, including “flow” of many operations with real goods and services into digital space; (2) enhancing global competition and its shift to non-material sphere; (3) appearance of new formats and opportunities for international business due to digitalization, more inclusive cross-border commerce and expansion of “cloud” employment, blurring of lines between cross- border and domestic operations in the globalized digital environment; (4) regulatory changes to deal with fast growing digital trade with participation of companies, entrepreneurs, households and actually beyond national jurisdictions; emergence of the new generation “above the border” disciplines related to regulation of commercial relations in virtual space. Many of the expected changes in the existing concept of international trade will be drastic.

Suggested Citation

  • Andrey Nikolaevich Spartak, 2018. "Effects of digital transformation on international trade," Russian Foreign Economic Journal, Russian Foreign Trade Academy Ministry of economic development of the Russian Federation, issue 5, pages 7-23, May.
    • Handle: RePEc:alq:rufejo:rfej_2018_05_7-23
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