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AI and International Trade

Author

Listed:
  • Avi Goldfarb
  • Daniel Trefler

Abstract

This paper explores the international dimensions of the economics of artificial intelligence. Trade theory emphasizes the roles of scale, competition, and knowledge creation and knowledge diffusion as fundamental to comparative advantage. We explore key features of AI with respect to these dimensions and describe the features of an appropriate model of international trade in the context of AI. We then discuss policy implications with respect to investments in research, and behind-the-border regulations such as privacy, data localization, standards, and competition. We conclude by emphasizing that there is still much to learn before we have a comprehensive understanding of how AI will affect trade.

Suggested Citation

  • Avi Goldfarb & Daniel Trefler, 2018. "AI and International Trade," NBER Working Papers 24254, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24254
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    Cited by:

    1. J. Klinger & J. Mateos-Garcia & K. Stathoulopoulos, 2018. "Deep learning, deep change? Mapping the development of the Artificial Intelligence General Purpose Technology," Papers 1808.06355, arXiv.org.
    2. Kariem Soliman, 2021. "Are Industrial Robots a new GPT? A Panel Study of Nine European Countries with Capital and Quality-adjusted Industrial Robots as Drivers of Labour Productivity Growth," EIIW Discussion paper disbei307, Universitätsbibliothek Wuppertal, University Library.
    3. Manav Raj & Robert Seamans, 2019. "Primer on artificial intelligence and robotics," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-14, December.
    4. Weiming Zhang & Jiachao Peng & Lian Zhang, 2023. "Disruptive Displacement: The Impacts of Industrial Robots on the Energy Industry’s International Division of Labor from a Technological Complexity View," Energies, MDPI, vol. 16(8), pages 1-19, April.
    5. Verstappen, Ksenia, 2018. "Economics of big data: review of best papers for January 2018," MPRA Paper 85520, University Library of Munich, Germany.
    6. Bernardo S Buarque & Ronald B Davies & Ryan M Hynes & Dieter F Kogler, 2020. "OK Computer: the creation and integration of AI in Europe," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 13(1), pages 175-192.
    7. Martina Francesca Ferracane & Janez Kren & Erik van der Marel, 2020. "Do data policy restrictions impact the productivity performance of firms and industries?," Review of International Economics, Wiley Blackwell, vol. 28(3), pages 676-722, August.
    8. Yang, Chih-Hai, 2022. "How Artificial Intelligence Technology Affects Productivity and Employment: Firm-level Evidence from Taiwan," Research Policy, Elsevier, vol. 51(6).
    9. Robert Wolfe, 2018. "Learning about digital trade: Privacy and e-commerce in CETA and TPP," RSCAS Working Papers 2018/27, European University Institute.
    10. Jun Liu & Yu Qian & Yuanjun Yang & Zhidan Yang, 2022. "Can Artificial Intelligence Improve the Energy Efficiency of Manufacturing Companies? Evidence from China," IJERPH, MDPI, vol. 19(4), pages 1-18, February.
    11. Wagner, Dirk Nicolas, 2020. "The nature of the Artificially Intelligent Firm - An economic investigation into changes that AI brings to the firm," Telecommunications Policy, Elsevier, vol. 44(6).
    12. Noman Arshed & Kamran Hameed & Asma Saher, 2022. "An Empirical Analysis of Supply Chain Competitiveness and Cleaner Production," SAGE Open, , vol. 12(4), pages 21582440221, October.
    13. Leka, Enxhi, 2022. "What Should Economists Know About the Cloud? A Literature Review on Digital Economics," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265651, International Telecommunications Society (ITS).
    14. Joel Klinger & Juan Mateos-Garcia & Konstantinos Stathoulopoulos, 2021. "Deep learning, deep change? Mapping the evolution and geography of a general purpose technology," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(7), pages 5589-5621, July.
    15. Liu, Jun & Chang, Huihong & Forrest, Jeffrey Yi-Lin & Yang, Baohua, 2020. "Influence of artificial intelligence on technological innovation: Evidence from the panel data of china's manufacturing sectors," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    16. World Bank, 2021. "Harnessing Artificial Intelligence for Development on the Post-COVID-19 Era," World Bank Publications - Reports 35619, The World Bank Group.
    17. Ozgun, Burcu & Broekel, Tom, 2021. "The geography of innovation and technology news - An empirical study of the German news media," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    18. Erik Brynjolfsson & Xiang Hui & Meng Liu, 2019. "Does Machine Translation Affect International Trade? Evidence from a Large Digital Platform," Management Science, INFORMS, vol. 65(12), pages 5449-5460, December.
    19. Dirk Nicolas Wagner, 2020. "Economic patterns in a world with artificial intelligence," Evolutionary and Institutional Economics Review, Springer, vol. 17(1), pages 111-131, January.
    20. Erik Marel & Martina Francesca Ferracane, 2021. "Do data policy restrictions inhibit trade in services?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(4), pages 727-776, November.
    21. Wei Cui & Nigar Hashimzade, 2019. "The Digital Services Tax as a Tax on Location-Specific Rent," CESifo Working Paper Series 7737, CESifo.

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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