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

Author

Listed:
  • Zi Hui Yin

    (Hunan University of Technology)

  • Chang Hwan Choi

    (Dankook University)

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.

Suggested Citation

  • Zi Hui Yin & Chang Hwan Choi, 2025. "How does Digitalization Affect Trade in Goods and Services? Evidence from G20 Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 3614-3638, March.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02029-1
    DOI: 10.1007/s13132-024-02029-1
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