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GTAP Resources: Resource Display

GTAP Resource #7339

"Sustainability impacts of digital trade policies in the Asia-Pacific"
by Corong, Erwin, Alexey Kravchenko, Anna Strutt and Yann Duval


Abstract
Digital technologies are reshaping global supply and demand, including by helping to reduce trade costs. While the contribution of digital services to global trade is not currently well understood, the impacts of policy changes are likely to be large. This paper uses a global computable general equilibrium model to examine the impact of various digital trade-related policies. We use the GTAP model and the latest version 11 of the GTAP database with a 2017 base year, extended to include emissions. This approach enables us to capture intersectoral and international linkages within a consistent framework. We use the OECD database on digital services restrictions to explore the impacts of trade restrictions on digital trade-related goods and services among different groups of economies, with a particular focus on Asia-Pacific economies.

We model a range of scenarios. Our “trade policy scenarios” relate to tariff and non-tariff liberalization and consider the impact of reductions in NTMs. In our “digital policy scenarios”, we model the impact of digital trade restriction changes and digitalization of trade procedures (digital trade facilitation). In terms of traditional trade policy, our results suggest there is relatively little scope to boost trade from tariff liberalization under the scenarios modelled, but many gains remain untapped in addressing non-tariff barriers. In terms of digital trade policies, the overall growth in digital trade restrictiveness over the past five years is modelled to have slowed both trade and GDP growth. Reversal of such policies, even if partial, is modelled to offer significant benefits, orders of magnitude higher than that of traditional trade policies. Digitalization of cross-border paperless trade procedures, in particular, offers the most benefits in the simulations we model.


Resource Details (Export Citation) GTAP Keywords
Category: 2024 Conference Paper
Status: Not published
By/In: Presented during the 27th Annual Conference on Global Economic Analysis (Fort Collins, Colorado, USA)
Date: 2024
Version:
Created: Strutt, A. (4/15/2024)
Updated: Strutt, A. (4/15/2024)
Visits: 61
- Non-Tariff barriers
- Non-Tariff measures in services
- Preferential trading arrangements
- Asia (East)
- Asia (South-Central)
- Asia (Southeast)
- Oceania


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