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Trade Cost in Services in the Era of Digitalization

Author

Listed:
  • OH, Soo Hyun

    (Korea Institute for International Economic Policy)

  • KIM, Sangkyom

    (Korea Institute for International Economic Policy)

  • Park, Innwon

    (Korea University)

  • Park, Soon Chan

    (National Kongju University)

Abstract

We studied how digitalization and restriction measures on digitalization can influence trade costs in services. Our empirical analysis shows that the development of digital technology leads to a reduction in trade cost of services, and the effect is significantly higher than that in trade cost of manufacturing. The result also shows that the trade costs in services are affected by digital trade regulation much more than by the advancement of digital technologies.

Suggested Citation

  • OH, Soo Hyun & KIM, Sangkyom & Park, Innwon & Park, Soon Chan, 2020. "Trade Cost in Services in the Era of Digitalization," World Economy Brief 20-7, Korea Institute for International Economic Policy.
    • Handle: RePEc:ris:kiepwe:2020_007
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    More about this item

    Keywords

    Digitalization;

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General

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