No. 841 - Understanding digital trade

This paper provides an overview of the literature on digital trade, focusing on its definitions, measurement methods and the main factors influencing its evolution. It also examines the increasing fragmentation of regulations concerning data governance and digital activities across different jurisdictions.

All estimates point to a significant increase in the importance of digital trade, which accounts for 25 per cent of world trade according to the OECD. The spread of the internet and advanced technologies like artificial intelligence, along with trade liberalization, have sustained its expansion. However, barriers to digital trade have recently increased, in line with a more restrictive international policy environment for trade, especially in sectors deemed strategic.

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