Impact of digitalization of international trade on the economic development of countries

Abstract

Considering the structure, scope, and subject composition, the critical analysis of the impact of digitalization of international trade on the economic development of countries is represented. This is due to the technological infrastructural asymmetry of global trade that has arisen due to the presence of a digital divide between developed countries (86.6% of the population have Internet access) and LDCs (19.1% of the population) because these countries do not have access to the Internet and do not have the opportunity to be fully involved in e-commerce and cross-border trade in digital products. An additional barrier to developing digital commerce, particularly in the African and Asia-Pacific regions, is the need for more legislation on various trade aspects of e-commerce, consumer protection (for 40% of LDCs), and data privacy (for 43% of LDCs). The influence of the war in Ukraine on the e-commerce market is determined. It is outlined that the studied demand has decreased by 12 times in 2022 compared to the pre-war period. The e-commerce market began to recover in 2023 gradually. The market is expected to reach an almost complete renewal in Ukraine by the end of 2023. The main task will be to expand the scope of existing free trade agreements (FTAs) to services, e-commerce, and investment for Ukraine. Corresponding trends will be observed in the world's global economy, too. Given the availability of an updated regulatory framework on these issues, Ukraine should become a significant player in a few international markets for services and trade in digital products. It is assumed that e-commerce will grow after the end of the war in Ukraine. Keywords: global trading system, World Trade Organization (WTO), trading system asymmetries, regional trade agreements, liberalization of international trade, institutionalization of international trade, digitalization of trade, international trade in services, e-commerce.

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