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A Quantitative Assessment of Electronic Commerce

Author

Listed:
  • Schuknecht, L.
  • Perez-Esteve, R.

Abstract

This paper tries to assess quantitatively the role of electronic commerce in economic activity and in trade and tariff revenue collection. The share of value added that potentially lends itself to electronic trade represents around 30 percent of GDP, most importantly distribution, finance and business services. Electronic commerce is also likely to boost trade in many services sectors significantly. Despite the growing importance of electronic commerce for economic activity and trade, tariff revenue loss from electronic commerce is likely to be minimal. Trade in potentially digitizable media goods (such as music, software or books) which currently faces a tariff in some countries represents less than one percent of total world trade. The revenue collected on these products amounts to less than one percent of total tariff revenue in most countries. Even if some of this trade moved "online", tariff revenue loss would be only a very small share of tariff revenue.

Suggested Citation

  • Schuknecht, L. & Perez-Esteve, R., 1999. "A Quantitative Assessment of Electronic Commerce," Economic Research and Analysis Division (ERAD) 99-01, World Trade Organization. Economic Research and Analysis Division (ERAD).
    • Handle: RePEc:fth:wtoera:99-01
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    References listed on IDEAS

    as
    1. Kono, Masamichi & Low, Patrick & Luanga, Mukela & Mattoo, Aaditya & Oshikawa, Maika & Schuknecht, Ludger, 1997. "Opening markets in financial services and the role of the GATS," WTO Special Studies, World Trade Organization (WTO), Economic Research and Statistics Division, volume 1, number 1.
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    Citations

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    Cited by:

    1. Ligthart, J.E., 2004. "Consumption Taxation in a Digital World : A Primer," Discussion Paper 2004-102, Tilburg University, Center for Economic Research.
    2. Susanne Teltscher, 2000. "Tariffs, Taxes And Electronic Commerce:Revenue Implications For Developing Countries," UNCTAD Blue Series Papers 5, United Nations Conference on Trade and Development.
    3. Mattoo, Aaditya & Schuknecht, Ludger, 2000. "Trade polices for electronic commerce," Policy Research Working Paper Series 2380, The World Bank.
    4. Clement Yuk Pang Wong & Jinhui Wu & Anming Zhang, 2006. "A Model of Trade Liberalization in Services," Review of International Economics, Wiley Blackwell, vol. 14(1), pages 148-168, February.
    5. Teltscher, Susanne, 2002. "Electronic Commerce and Development: Fiscal Implications of Digitized Goods Trading," World Development, Elsevier, vol. 30(7), pages 1137-1158, July.

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    More about this item

    Keywords

    INTERNATIONAL TRADE ; TECHNOLOGICAL CHANGE;

    JEL classification:

    • F1 - International Economics - - Trade
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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