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Trade Theories in the Digital Age

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  • Yongjin Wang
  • Wenbin Wang

Abstract

The digital economy is overtaking the industrial economy and reshaping every subfield of economics. As a result, widely accepted conclusions and policy implications of international trade theories are becoming outdated. This paper endeavors to delineate some of the potential directions in which digital technologies may disrupt and overturn traditional trade theories. It also provides frameworks that enable the conceptualization and analysis of international trade in the digital age. The advance of digital technology has given rise to novel industries and numerous supporting infrastructures and has instigated a fundamental transformation of traditional industries. This transformation is evident across multiple dimensions, including factors of production, product attributes, production technology, market structures, business models, and consumer search behaviors.

Suggested Citation

  • Yongjin Wang & Wenbin Wang, 2025. "Trade Theories in the Digital Age," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 33(2), pages 1-40, March.
    • Handle: RePEc:bla:chinae:v:33:y:2025:i:2:p:1-40
    DOI: 10.1111/cwe.12581
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