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The Impact of the Digital Economy

Paper Session

Friday, Jan. 5, 2018 12:30 PM - 2:15 PM

Loews Philadelphia, Lescaze
Hosted By: International Trade and Finance Association
  • Chair: Joseph Pelzman, George Washington University

Digital Technology and Cross-border Production Sharing

Sven W. Arndt
,
Claremont McKenna College

Abstract

Digital Technology and Cross-border Production Sharing

Digital Trade and Comparative Advantage

Alan Deardorff
,
University of Michigan

Abstract

“Digital Trade and Comparative Advantage."
E-commerce is playing an increasing role in international trade, but it is certainly not something that was envisioned by David Ricardo when he formulated the principle of comparative advantage. This paper will address the question of whether the traditional concept of comparative advantage applies unchanged to digital trade, or whether it needs to be modified or even abandoned.

Accounting for Digital Assets in International Trading Agreements

Joseph Pelzman
,
George Washington University

Abstract

“Accounting for Digital Assets in International Trading Agreements”
The stock of intangible assets varies considerably by region, country and company stakeholders. Some markets have larger numbers of strong digital contenders, others fewer. The need for growth and competitiveness will force companies to build strong digital capabilities jointly across borders. Viewing them as assets rather than additional areas of firm specific expenditures requires a new set of financial lenses. Within the context of International Trade Agreements the rules of access, development and innovation of these Digital Assets will be subject to change in a still-evolving WTO landscape.

Cryptocurrencies As a New Global Financial Asset

Gina Pieters
,
Trinity University

Abstract

The distribution of the crypto-market across economies has received little attention despite the markets substantial size. I show that the distribution of fiat currencies across Bitcoin does not correspond to the distribution across the crypto-market in general, with some economies investing considerably more (or considerably less) in non-Bitcoin cryptos. Because cryptos represent their own medium of exchange I derive three different measures of fiat market shares: Direct, Purchase, and Implicit. All three measures find that while cryptos may be globally traded, the crypto-market is highly concentrated in just three economies---the US dollar, the South Korean Won, and the Japanese Yen account for over 90\% of all crypto transactions. Fiat shares in the crypto market cannot be explained by size of the corresponding stock market, economic size, income, financial openness, or digital access. Some currencies with large exposures to the crypto-market have only a small market-share which may represent either increased diversification away from home-bias, a new route for financial contagion, or both.

Megaregionalism, Trade and Innovation in the Digital Economy

Michael Plummer
,
Johns Hopkins University SAIS Europe-Bologna

Abstract

“Megaregionalism, Trade and Innovation in the Digital Economy”
Trade and Innovation in a post-TPP world.
Discussant(s)
Marta Bengoa Calvo
,
Assoc. Prof. City University of New York
Amir Shoham
,
Temple University
JEL Classifications
  • F1 - Trade
  • F1 - Trade