The Intrinsic Logic and Future Prospects of the Impact of Digitization on International Trade
Year: 2025
Type: article
Abstract: The rapid advancement of digital technologies since the 21st century has significantly changed the landscape of international trade. The spatial and informational asymmetries are no longer a problem thanks to big data, artificial intelligence, blockchain, and other new technologies that drastically lower transaction costs while increasing efficiency and market reach.These innovations have catalyzed many new business models, such as cross-border e-commerce and digital services trade. This paper consists of three chapters. The author will present an analysis encompassing the reformation of classical trade theories by digitalization, then summarize the mechanisms driving trade transformation by digital technologies, and focus on the empirical paradoxes and controversies arising from this shift. In this paper the study finds that digitization has promoted the extension of traditional trade theories, while restructuring global value chains by elevating the export quality of the manufacturing sector’s products and maximizing the value of economies of scale. However, the digital revolution is accompanied by challenges such as data monopolies, the digital divide, and ethical risks, which necessitate a multidisciplinary governance framework to balance efficiency with equity. These problems should not be overlooked. In summary, this paper advocates that future research needs to coordinate technological and institutional innovation and also promote cooperation between digital governance norms and the international trade regime. These methods aim to provide theoretical underpinnings and pragmatic pathways for the further development of digital trade.
Author: Ruiqi Chen
Institution: Nanjing Audit University
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4411494995