Digital technologies have driven a paradigm shift in how services are supplied and consumed across borders.
On the supply side, new data networks, digital tools, and platforms enable services providers to transform the modes of services supply and expand their customer base beyond their national boundaries. Using online marketplace platforms such as Amazon, Alibaba, and eBay, firms of all sizes can reach out to potential customers and suppliers worldwide.
Digital tools and platforms also help firms access online resources, such as training and government services, and attract a wide range of qualified workers with reduced recruitment time and hiring costs.
On the demand side, digital technology allows access to more variety and choices of services at lower costs. It also provides convenience as well as customized or personalized services.
Consumers may further benefit by getting services quicker due to fewer intermediaries. As digitalization of services can reduce transaction costs compared to the analogue.
International trade in digitally deliverable services (DDS), or services that can be delivered over information and communication technologies (ICT) networks, include ICT services themselves, sales and marketing services, insurance and financial services, professional services, back-office services, research and development (R&D), and education and training services, among others.
The objective of this study is to investigate the rising phenomena of DDS from a development perspective.
The study is structured as the following.
Chapter II examines the growth pattern of DDS in international trade and selected sectors where digitalization massively transformed the supply and the demand of services.
Chapter III discusses major opportunities arising from DDS, particularly for developing countries, as well as challenges.
Chapter IV discusses approaches that a government may take when formulating policy towards maximising the developmental gains from DDS.
