World Economy Major Trends: International Economic Integration

Drynochkin, Alexey; Fedorchenko, Andrey; Habarta, Andrzej; Kaveshnikov, Nikolay; Komkova, Elena G.; Kostyunina, Galina Mikhailovna; Morozenskaya, Evgenia V.

doi:10.1007/978-3-031-20328-2_6

Cited by 1 publication

(1 citation statement)

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“…To measure the regulatory measures of various countries on digital service trade, Ferencz (2019) constructed a digital service trade restriction index from five policy areas, such as electronic transactions and infrastructure construction. Meanwhile, van der Marel and Ferracane (2021) found that data flow restrictions significantly negatively impact trade, particularly in data-intensive service industries, while Drynochkin et al (2023) highlights digital trade restrictions mainly affect the export of digital services through trade costs. Fortunately, improving network facilities can effectively reduce the negative impact of digital service trade restrictions, primarily when the network infrastructure is well constructed and good network soft power helps overcome digital service barriers (Suh and Roh 2023).…”

Section: Literature Reviewmentioning

confidence: 99%

Digital Trade Networks: Multinational Enterprises and Digital Regulation

Zhang

Gong

2023

Preprint

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The influence of multinational enterprises on digital trade is growing significantly, resulting in profound transformations within global production networks. In this paper, we establish a comprehensive global digital trade network using the OECD-AMNE database and conduct empirical analysis to examine the impact of digital regulations and network structure. Our findings reveal domestic and international digital regulations' collaborative influence on countries' network participation. Moreover, we observe that stringent domestic restrictions impede exports. Additionally, our results highlight the positive role of reciprocal network structures in fostering trade relationships. By employing a value-added decomposition approach, we uncover that digital service trade restrictions hinder the export of value-added trade when multinational enterprises act as upstream value-added providers. However, downstream producers experience comparatively lesser impact. Furthermore, we identify that disparities in digital service regulation between home and host countries significantly influence the digital service output of multinational enterprises. Additionally, differences in global rules have implications for investment relationships. To sum up, we have put forward policy suggestions that are specifically designed for the newly adopted digital commerce systems. These suggestions highlight the significance of maintaining harmony between digital accessibility and safeguarding the country's economic interests. JEL Classification: F14; F42;

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Section: Literature Reviewmentioning

confidence: 99%