DO BARRIERS TO DIGITAL SERVICES TRADE HAMPER ECONOMIC GROWTH? EVIDENCE FROM A CROSS- COUNTRY ANALYSIS

Abstract

This study examines the relation between trade barriers on digital services and economic growth for a panel of 44 nations from 2014 to 2020. Using the system generalised method of moments estimator and accounting for other factors, we find that trade restrictions on digital services negatively impact economic growth. This finding is consistent and robust across various digital service types and income levels. To boost economic growth, policymakers must ease trade barriers on digital services.