New Technologies and Trade: New Determinants, Modalities, and Varieties

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Feb 2020
Digital technologies are changing the way people, businesses, and governments interact, but what is their impact on international trade? Although some of the effects of digital technologies on trade parallel those of past technological advancements, we argue that a variety of effects are completely novel. We present evidence that new technologies can change why countries trade, how they trade, and what they trade. We identify new dilemmas faced by policy makers in the digital era and provide policy recommendations.