International trade and digitalization of world economy

Abstract

This article analyzes the impact of digital technologies on the global economy and international trade. It is shown that the digital revolution has become possible due to technological innovations in computerization, communications and information processing. Th ere are arguments proving that digital technologies reduce trading costs. Hence, it may be concluded that digitalization could
expedite international trade. Based on the analysis, small and medium-sized enterprises as well as firms from developing countries will gain the greatest benefits from digital technologies that could enable these countries to increase their share in world exports. Another consequence of digitization of the world economy could be an increase in the share of services in international trade. It is also shown that in the digital era significant changes in the sources of competitive advantages may occur, for instance, the role of such determinants as quality of IP protection, regulation of data fl ows and digital infrastructure might become more important.