THE IMPACT OF DIGITAL SERVICES TRADE RESTRICTIVENESS ON TRADE IN TELECOMMUNICATIONS, COMPUTER, AND INFORMATION SERVICES: EVIDENCE FROM OECD COUNTRIES

Abstract

This study analyzes the impact of digital services trade restrictiveness on trade in telecommunications, computer, and information services of Organisation for Economic and Co-operation Development countries by utilizing the Poisson Pseudo Maximum Likelihood method covering the period 2014-2022. The findings of the study statistically significantly confirm the disincentive impact of the higher degree of digital services trade restrictiveness on both exports and imports in telecommunications, computer, and information services. Therefore, more relaxing policies can most likely help to enhance the trade in this type of services due to mainly diminishing trade costs. Besides, to make use of more advantages of increasing digitalization, further cooperation and dialogue across countries, particularly with technologically advanced countries, is required. By this means, domestic services suppliers can attain foreign advanced knowledge and technology at relatively moderate costs, thus productivity can be improved, and eventually, more trade in services can be achieved.