Expanding International Services Trade in Developing Economies: Understanding How Trade in Digital and Technology Services Can Empower Economic Development Opportunities for Global South States in the Indo-Pacific Region.

Abstract

The expansive globalization and advancements in digital information and communication technologies have facilitated the integration of the global economy and reshaped the conditions of international trade. Enabling the digitalization of cross-border trade through the digital transmission of data and information to facilitate transactions. An emerging proponent of this digitalized economy has been the digital trade in services, which seeks to facilitate the cross-border transfer of knowledge and the global division of labour. Through expanding digital trade in services economies can foster economic growth through increased product efficiency, integrated new business models, and broadening the access of firms able to engage in the global economy. However, due to the uneven development of digital technology infrastructure and integration into the digital economy, technologically advanced high-income economies predominate the digital service trade environment. Thus, as developing economies expand their technological infrastructure, they serve to be the greatest benefactors of this digital economy.

Upon this background, this paper aims to explore the evolving approaches that Global South states of the Indo-Pacific are employing to advance their trade in digital and technology services. Through focusing on the economic digitalization strategy of the Philippines and analyzing the current state of their determinants of comparative advantage in digital service trade. We identify effective digitalization policies currently being adopted and highlight future policy areas that can advance broader economic development.