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Assessing Policy Impacts in Digital Services Trade: Implications for the Philippines

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  • Quimba, Francis Mark A.
  • Moreno, Neil Irwin S.

Abstract

Rapid digitalization has become integral to the global economy, connecting markets and introducing new modes of production and trade. With a relatively open digital environment, the Philippines is well-positioned for digital trade integration with its Asia-Pacific neighbors. However, various measures must be taken to prepare for regional integration, some of which are considered low-hanging fruits that the government can quickly adopt. This paper examines the effects of these low-hanging fruits on the bilateral trade of digitally deliverable services. The authors conducted a two-stage regression of the gravity model of trade using data from various sources, allowing for the estimation of country-specific characteristics in the presence of three-way fixed effects. The results reveal that the low-hanging fruits generate heterogeneous effects on digital services trade.

Suggested Citation

  • Quimba, Francis Mark A. & Moreno, Neil Irwin S., 2023. "Assessing Policy Impacts in Digital Services Trade: Implications for the Philippines," Philippine Journal of Development PJD 2023 Vol. 47 No. 2c, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:pjdevt:pjd_2023_vol__47_no__2c
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    Keywords

    digital services trade; WTO GPA; local loop unbundling; data retention policy; copyright enforcement; regional integration;
    All these keywords.

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