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Patterns of trade restrictiveness in online platforms: A first look

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  • Martina Francesca Ferracane
  • Erik van der Marel

Abstract

This paper develops a digital platform restrictiveness index for 64 countries based on ECIPE’s Digital Trade Estimates database and the Digital Trade Restrictiveness Index. We identify specific restrictions that affect online platforms with a focus on online search, e‐commerce and social media. The results show that both OECD and non‐OECD countries show high levels of trade restrictions on online platforms. Moreover, some of the most restricted countries are characterised by large markets, signifying that a substantial part of the global economy gravitates towards restricting online platforms. Based on the platform restrictiveness index, we perform an econometric analysis showing that trade restrictions for online platforms are significantly associated with lower contributions of the ICT sector to productivity growth in the entire economy. The results suggest that reducing restrictions on online platforms can increase the ICT’s contribution to overall productivity growth towards a level seen before the global financial crisis. Sectors that would benefit the most are those that make wider use of online platforms and the Internet, including information services, business services and financial services.

Suggested Citation

  • Martina Francesca Ferracane & Erik van der Marel, 2020. "Patterns of trade restrictiveness in online platforms: A first look," The World Economy, Wiley Blackwell, vol. 43(11), pages 2932-2959, November.
    • Handle: RePEc:bla:worlde:v:43:y:2020:i:11:p:2932-2959
    DOI: 10.1111/twec.13030
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    Cited by:

    1. Surana, Ankit & Chavan, Meena & Kumar, Vikas & Chirico, Francesco, 2024. "The internationalization process: A contextual analysis of Indian ibusiness firms," International Business Review, Elsevier, vol. 33(4).
    2. Shuang Hao & Zhi Chen & Chien-Chih Wang & Che-Yu Hung, 2023. "Impact of Digital Service Trade Barriers and Cross-Border Digital Service Inputs on Economic Growth," Sustainability, MDPI, vol. 15(19), pages 1-20, October.
    3. Xiying Zhang & Yihuan Wang, 2022. "Research on the Influence of Digital Technology and Policy Restrictions on the Development of Digital Service Trade," Sustainability, MDPI, vol. 14(16), pages 1-16, August.
    4. Gupta, Shagufta & Ghosh, Poulomi & Sridhar, V., 2022. "Impact of data trade restrictions on IT services export: A cross-country analysis," Telecommunications Policy, Elsevier, vol. 46(9).
    5. Qinqin Wu & Mengjie Bi & Faiza Siddiqui & Yao Tang, 2023. "Assessing the Impact of Digital Trade on Enterprise Competitiveness: Evidence from Chinese A-Share Listed Companies," Journal of Industry, Competition and Trade, Springer, vol. 23(3), pages 329-362, December.

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