Impact of digital services trade restrictiveness on manufacturing export efficiency

Abstract

ABSTRACTBased on the application of the stochastic frontier analysis (SFA), this article examines the impact of digital services trade restrictiveness (DSTR) on the total export efficiency and domestic value-added (DVA) export efficiency of manufacturing industries in 46 economies from 2014 to 2019. Results show that DSTR in exporting economies have a negative impact on all types of export efficiency, whereas DSTR in importing economies have a negative impact solely on the efficiency of total exports and final goods exports. Further researches indicate that the impact of DSTR is mitigated in exporting economies with larger information and communication technology (ICT) infrastructures, such as international bandwidth and mobile cellular. From the perspective of multiple policy areas, the DSTR of infrastructure connectivity, electronic transactions, and other barriers reduce the total export efficiency. However, only the DSTR of these areas in exporting economies significantly affect DVA export efficiency. Overall, our findings can inspire economies to adopt more precise and scientific trade policies while participating in the governance of digital services trade and supporting the growth of higher-quality manufacturing exports.