Approaches to Assessing the Level of Digitalization and Global E-commerce Policy Choices

Abstract

Digital technologies and their role in global economic development have been increasing the past two decades. Digitalization has changed many aspects of human society. It had a significant impact on business processes in international trade, reducing costs, increasing the value and speed of cross-border transactions. E-commerce is becoming the most important engine for economic growth. The article examines new digitalization trends in the context of the international trade development. Among the key trends caused by digitalization and affecting international trade, it highlights the following: 1) expanding of globally e-commerce sales and the world marketplaces turnover; 2) increasing the value of international trade in ICT goods and services, and digitally-deliverable services; 3) growth of world exports in services by mode 1 of supply, i.e. cross border supply. The problem of assessing the level of digitalization of the economy and its impact on trade is becoming more and more urgent. Many leading international organizations including OECD, WTO, IMF, UNCTAD are working on developing universal approaches to the formation of terminology in the field of digitalization of trade, measuring digital trade and classifying economic sectors depending on the level of digitalization. The study draws particular attention to these issues. The authors have systematized an extensive list of international indices. The first cluster includes indices characterizing the level of e-commerce markets development. The second cluster contains indices that assess the development of information and communication technologies. Finally, the third cluster of indices assesses penetration of digital technology into economy and life. Indices that assess digital trade policy measures were also examined