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Enhancing Digital Services Trade: The Case of the People's Republic of China

Author

Listed:
  • Rolando Avendano

    (Asian Development Bank)

  • Hildegunn Kyvik Nordås

    (Örebro University)

Abstract

This paper studies the drivers of trade in services with a focus on the People’s Republic of China (PRC). It explores how the digital transformation of services has made services more easily tradable across borders and the policies that facilitate or hinder services trade. The paper starts with a descriptive analysis of new data on bilateral trade and sales from foreign affiliate trade statistics (FATS). Using structural gravity, it then studies the impact of regulatory reform on services trade flows as well as foreign affiliates at a granular level. Finally it applies general equilibrium structural gravity to simulate the impact of (i) regulatory reform in the information and communication technology (ICT) sector in the PRC and ii) implementation of the Regional Comprehensive Economic Partnership on trade, sales and output in services across all economies for which data are available. The largest effect stems from regulatory reforms of the ICT sector in the PRC, which benefit all economies.

Suggested Citation

  • Rolando Avendano & Hildegunn Kyvik Nordås, 2026. "Enhancing Digital Services Trade: The Case of the People's Republic of China," ADB Economics Working Paper Series 855, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:023097
    DOI: 10.22617/WPS260321-2
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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