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AI and International Trade

Author

Listed:
  • Avi Goldfarb
  • Daniel Trefler

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.

Suggested Citation

  • Avi Goldfarb & Daniel Trefler, 2018. "AI and International Trade," NBER Working Papers 24254, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24254
    Note: ITI PR
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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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