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Comparative Study of Digitalization Impact on Global Goods and Services Markets in Advanced and Developing Economies

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  • Oliinyk Andrii

    (State University of Trade and Economics, Kyiv, Ukraine)

Abstract

In the era of rapid technological progress, the influence of dizitalization on different aspects of international economic activity can’t be overstated. The aim of this article is to conduct a comprehensive comparative study of digitalization’s impact on global goods and services markets, with a specific focus on advanced and developing economies using multiple linear regression. The research methodology involved comprehensive data collection for 35-38 advanced economies and 52-66 developing economies depending on the availability of data. The analysis included depended variables (18 export and import goods sectors and 18 export and import services), independent variables (digitalization, consisting of ICT deployment, ICT export and import, ICT investment variables), control variables such as GDP growth, CPI, trade openness, exchange rate and political stability. The findings demonstrate the ICT infrastructure and ICT exports positive impact on export of technology-intensive goods, such as ores and metals, machinery and equipment, and tools and devices in advanced economies. Digitalization’s positive impact on trade in goods appeared weaker in developing economies, potentially due to lower levels of ICT adoption or differing export focuses. ICT export has positive impact on financial services imports, indicating a reliance on imported financial services while exporting ICT capabilities. The model shows a high success rate depending on variables. The study highlights digitalization’s varied impact on advanced and developing economies, emphasizing its importance for trade, competitiveness and policymakers in the global market.

Suggested Citation

  • Oliinyk Andrii, 2024. "Comparative Study of Digitalization Impact on Global Goods and Services Markets in Advanced and Developing Economies," Economics, Sciendo, vol. 12(2), pages 195-218.
    • Handle: RePEc:vrs:econom:v:12:y:2024:i:2:p:195-218:n:1013
    DOI: 10.2478/eoik-2024-0026
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    References listed on IDEAS

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    1. Zhongwei Xing, 2018. "The impacts of Information and Communications Technology (ICT) and E-commerce on bilateral trade flows," International Economics and Economic Policy, Springer, vol. 15(3), pages 565-586, July.
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    More about this item

    Keywords

    digitalization; ICT export and import; ICT deployment; ICT investment; world goods market; world services market; trade; GDP; CPI;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • F01 - International Economics - - General - - - Global Outlook
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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