Boosting Trade in Services in the Digitalisation Era

Summary:

Trade with digital services has been growing quickly over the last years. But Germany is using its potential in this area only insufficiently: in a ranking of 28 advanced economies it only made the 19th place. Other large European economies also perform beneath their potential. This Focus Paper summarises the main findings for the study for EU member states.

A study by the European Centre of International Political Economy (ECIPE), commissioned by the Bertelsmann Stiftung – on which this Focus Paper is based – compares current observed trade in digital services with an econometrically computed potential volume, taking into account structural characteristics of the relevant countries. On this basis a ranking is established, showing which countries over- or under-perform in trade in digital services. The set of countries covers most European Union member states and additional OECD countries.

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