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ApplyingDigitalSupply-UseTablesinDevelopingEconomies
UNCTADTECHNICALNOTESONICTFORDEVELOPMENT|NO.21
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©2024,UnitedNationsConferenceonTradeandDevelopment
Thefindings,interpretationsandconclusionsexpressedhereinarethoseoftheauthorsanddonotnecessarilyreflecttheviewsoftheUnitedNationsoritsofficialsorMemberStates.
ThedesignationsemployedandthepresentationofmaterialonanymapinthisworkdonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheUnitedNationsconcerningthelegalstatusofanycountry,territory,cityorareaorofitsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.
MentionofanyfirmorlicensedprocessdoesnotimplytheendorsementoftheUnitedNations.
Photocopiesandreproductionsofexcerptsareallowedwithpropercredits.
Thispublicationhasnotbeenformallyedited.
UNCTAD/TCS/DTL/INF/2024/1
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Acknowledgements
ThistechnicalnotewaspreparedbytheDivisiononTechnologyandLogisticsofUNCTAD,undertheguidance
ofandwithcontributionsfromTorbjörnFredrikssonandDanielKer.
UNCTADgratefullyacknowledgesthecontributionsofJohnMitchell.
ThenotewascommissionedbyUNCTADasabackgroundpaperforthefourthmeetingoftheUNCTAD
WorkingGrouponMeasuringE-commerceandtheDigitalEconomy,heldfrom30Novemberto1December
2023.
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ApplyingDigitalSupply-UseTablesinDevelopingEconomies
Summary
DigitallyfocusedindicatorsareabsentwithintheSystemofNationalAccounts,thestandardstatisticalframeworkformeasuringeconomicactivity.TheDigitalSupply–UseTables(DigitalSUTs)frameworkwascreatedtoimprovethevisibilityofandinformationavailableondigitalphenomenawhilebeingconsistentwiththeexistingnationalaccountstatistics.TheframeworkhasbeendesignedasaderivationfromtheSupply-UseTables(SUTs).However,SUTsarenotavailableinmanydevelopingcountriesandoftencomeinfrequentlywithsignificanttimelags.ThistechnicalnotelooksathowcountrieswithSUTscantakestepstobeginapplyingtheDigitalSUTsframework,andhowthefundamentalprinciplesandapproachessetoutintheDigitalSUTsframeworkcanbeappliedtokeynationalaccountsaggregatesthataremorewidelyavailableindevelopingcountries,withoutrequiringfullSUTs.Itpointstoactionsthatcountrieswithalimitedstatisticalbasistoworkfromcantaketo
begincompilingDigitalSUTsorkeyindicatorsfollowingtheprinciplesoftheframework.
1.Introduction
Digitalizationhasfundamentallyalteredtheproductionandconsumptionofgoodsandservicesworldwide.Firmsaredisruptingestablishedmarketsandimprovingtheefficiencyoftheirproductionprocessesthroughdigitalization,automatingtaskspreviouslydonebyhumansaswellasusingdigitaltoolstocommunicateandcarryoutprofessionalwork.Atthesametime,digitaltransformationhaspermittedconsumerstoaccessalargervarietyofgoodsandservices,whileexercisinggreatercontroloverthecharacteristicsofthetransactionprocesses.Thisphenomenonisbecomingnearuniversalduetothecontinualgrowthofinternetuseinallcountrieswithtwo
thirdsoftheworld’spopulationnowusingtheinternet(ITU,2022).
Despiteextensivedigitalizationacrosseconomies,digitallyfocusedindicatorsareabsentwithintheSystemofNationalAccounts,thestandardstatisticalframeworkformeasuringeconomicactivity.TheDigitalSupply–UseTablesframeworkwascreatedtoimprovethevisibilityofandinformationavailableondigitalphenomenawhile
beingconsistentwiththeexistingnationalaccountstatistics.
ThecompilationofDigitalSUTsdoesnotmakeexistingeffortstomeasuree-commerce,theICTsector,orICTproductsredundant;onthecontrarytheframeworkisenabledbytheseinitiatives.However,whiletherearemanyexamplesofcountriesgatheringinformationone-commerce,thevariabilityofmethodsandsources,limitsboththeirexhaustivenessandcomparability(UNCTAD,2023).Takingthisinformationandusingit,notjustasstand-aloneoutput,butasabasistoderivecomplementarybreakdownsfornationalaccountsmeasuresthathavebeencompiledinawaythatisexhaustiveandcomparable,suchasthoseinSUTs,canhelptoalleviatethisproblem.Furthermore,theDigitalSUTsframeworkgoesbeyonde-commerceandICTs,asitincludesthedigitalproducts
beingproducedaswellasactorsthatarereliantondigitalizationtogeneratetheircontributiontotheeconomy.
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TheDigitalSUTsframeworkwasoriginallydevelopedbytheOECD(2019)andincludesoutputsthatcanbecompiledindiverseways.ItprimarilyprovidesaframeworkforthereallocationofSUTtables,incountrieswith
thoseavailable.
Atthesametime,theframeworkoffersflexibilityforallcountrieslookingatincreasingthevisibilityofdigitalizationintheireconomy.RatherthanabsolutelyrequiringfullSUTs,manyoftheconceptsandindicatorsoutlinedintheDigitalSUTsframeworkcanbeappliedtoaggregatesthatareoftencompiledaspartofstandardannualnationalaccounts
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.Theseaggregatesincludetotaloutputandvalueaddedeithercoveringtheentireeconomyorsplitbyindustry,totalhouseholdfinalconsumption,totalimports&exports.Theproductionofindicatorsthatprovidegreaterintelligenceondigitalization’simpactontheeconomyisapriorityforpolicymakersandcannotalwayswaituntilSUTsarefullydeveloped.Therefore,whiletheDigitalSUTsframeworkisaimedatbreakingdownrowsandcolumnofSUTs,theconceptswithintheframeworkcanstillprovidevalueto
usersifappliedtoalternativenationalaccountoutputs.
ThistechnicalnotepresentsasummaryoftheDigitalSUTsframework,includingthepolicyareaswhereinformationfromtheDigitalSUTscanbeofmostuse.Itwillthenidentifyspecificareasoftheframeworkthataremostobtainableforcountrieswithamorelimitedbaseattheirdisposalandincludesomeexamplesofwork
thatcountriesarealreadydoinginthisarea.
2.OverviewoftheDigitalSUTs
DigitalSupply-UsetablesaregeneratedbyaddingadditionalrowsandcolumnstotheexistingSUTs.Whendesigningaframeworktoincreasethevisibilityofdigitalizationinthenationalaccounts,itwasconsideredmorepracticalforcountriestocreatenewestimatesbybreakingdownexistingnationalaccountoutputsratherthanbuildingupnewoutputs(OECD,2023).BybeginningwithSUTs,threedifferent,butinterlinked,measurementperspectivescanbeutilized.Thesethreemeasurementapproaches(transactional,product,andindustry)arediscussedinmoredetailbelow.WhiletheframeworkisbasedonthefullSUTsoutlinedintheSystemofNationalAccounts(UNSD,2009),manyofthehighpriorityindicatorswithintheframeworkcanbecreatedbybreakingdowncoreNationalAccountaggregatessuchasHouseholdfinalconsumptionexpenditure,intermediateconsumption,importsandexports-ratherthanrelyingonthedetailedproductrowsandindustrycolumnsthat
existintheSUTs.
ItisworthnotingupfrontthattheDigitalSUTsframeworkdoesnotdefineorseektomeasure“thedigitaleconomy”orlistaspecificsetofactivitiesasmakingupthedigitaleconomy.Sincedigitalizationimpactsthecreationanddeliveryofalmosteverygoodorservicewithintheeconomyinonewayoranother,itwasseenasfutiletotryanddelineatecertainindustriesorproductsas“digital”whiledelineatingothersas“non-digital”.InthiswaytheOECD’sviewwassharedbytheIMFasearlyas2018,whenitsuggestedthat“theDigitalEconomycouldwellequaltheentireeconomyifdefinedinthebroadestsense”(IMF,2018).Thisisnottodisregardtheusefulnessofaninternationallyagreedupondefinition,butrather,duetotherangeofopinionsonwhatshouldbe
included(andexcluded)insuchadefinition,theframeworkaimstoachieveconsensusondefinitionsof
1SincetheSUTsisacomprehensiverepresentationoftheeconomy,manyoftheseaggregatesdoappearwithintheSUTs,buttheyareoftencompiledbycountriesregardlessofwhethertheysubsequentlyproduceSUTsornot.
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components,ratherthanofthedigitaleconomyitself.Aswillbediscussedlaterinthistechnicalnote,thereplacementofasingleall-encompassing“digitaleconomy”estimatewithmultipleindicatorsonspecificdigitalphenomenaprovidesalevelofinformationoftenmuchmoreusefultopolicymakers,sinceitallowsgreaterclarity
onthespecificdigitalelementsdrivinggrowth.
Thesuiteofindicatorsgeneratedinformsusersonspecifictrends,productsandactorsthatareconsideredasquintessentialofthedigitaleconomy.Importantly,itprovidesinsightinhowspecificelementsofthedigital
economyarerepresentedandaccountedforwithintheexistingnationalaccountaggregates.
Theframeworkcontainsthreedistinctdimensions,whichare:
.Thenatureofthetransaction(the‘how’).
.Thegoodsandservicesproduced(the‘what’).
.Thenew‘digitalindustries’shownseparatelyintheDigitalSUTs(‘who’).
Thethreeperspectives(seefigure1)reflectthemultidimensionalnatureofthedigitaleconomy,beyondasimpleaggregationofdigitalproducts.Furthermore,theframeworkoffersthepossibilityofcreatingarangeofdifferent
outputsdependingonthedataavailabletothecountry.
Figure1.TheconceptualframeworkofDigitalSUTs
Source:(OECD,2023)adaptedfrom(IMF,OECD,UNCTADandWTO,2023).
Note:1.DIPs=DigitalIntermediationPlatforms.
2.Therearecurrentlysevennewdigitalindustries;thelastcolumninFigure1showsexamples.
3.ThethreeperspectivesoftheDigitalSUTs
Asummaryofthethreeperspectivesisincludedbelow,muchofthismaterialistakenfromseveralpublications
focusedontheDigitalSUTsframework,mostofwhichwereproducedbytheOECD’sInformalAdvisoryGroup
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onMeasuringGDPinaDigitalizedEconomy(IAG)andtheISWGNADigitalizationtaskteam
2
.ThesepublicationsoutlineindetailtheDigitalSUTsframework,includingspecificdefinitionsandcompilationexamples
3
.
a.Natureofthetransaction
ThenatureoftransactionisthefundamentaldifferentiatoroftheDigitalSUTs,asconventionalSUTsornationalaccountoutputsmakenodistinctiononhowatransactionisfacilitated.Inthemoderneconomy,goodsandserviceswhichwerepreviouslydominatedbyphysicaltransactionsareincreasinglybeingordereddigitallyincludingviathirdpartyapps,atrendthatpickedupspeedduringthepandemic
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.
WithintheDigitalSUTsframework,aproductcaneitherbedigitallyordered,ornon-digitallyordered-withdigitalorderingdefinedas“Thesaleorpurchaseofagoodorservice,conductedovercomputernetworksby
methodsspecificallydesignedforthepurposeofreceivingorplacingorders”.
Likewise,aservicecanbedigitallydeliveredornon-digitallydelivered-withtheformerdefinedas“transactionsthataredeliveredremotelyovercomputernetworks”
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.
BothdefinitionsareconsistentwiththoseputforwardintherecentupdateintheHandbookonMeasuringDigitalTrade(IMF,OECD,UNCTADandWTO,2023).Alsolikethedigitaltradeframeworkistheadditionaldelineationbetweenhowtheproductisdigitallyordered,eitherdirectwithproducerorviaathird-partydigitalintermediation
platform(seedigitalindustries).
Theadditionofthetransactiondimensionreflectstheimportanceofdigitalorderinganddigitaldeliveryinthemoderneconomy.Whilethedistinctionbetweendigitalandnon-digitalorderingcanbeappliedtoeveryproductwithintheSUTsduetothesometimeslimitedavailabilityofsourcedataondigitalordering,itisconsideredmorefeasibletoapplythisatarelativelyaggregatedlevel,suchastotalexportsorthepublishedhouseholdfinalconsumptionexpenditurecategories.
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Conversely,sinceitisappliedtoSUTcolumnsnotrows,thedigitallydeliverablesplitisonlyappliedtoaggregateestimates,suchastotaloutput,finalconsumption,importsandexports
(SeeColumns‘T’infigure2).
2TheISWGNAistheIntersecretariatWorkingGrouponNationalAccounts.ThisgroupincludesEurostat,theIMF,UnitedNationsStatisticalDivision,theOECD,andtheWorldBank.
3Thesepapersinclude;theoriginalframeworkpresentedtotheIAG(OECD,2019),theOECDGoingDigitaltoolkitmeasurementnote(Mitchell,2021),anSNAGuidancenotepresentedforglobalconsultation(ISWGNA,2021)aswellasanextensiveHandbookoncompilingDigitalSUTs(OECD,2023).
4AnalysisfromMcKinseybasedonself-selecteddatashowsthatacrossAustralia,Canada,theUnitedStatesandtheUnitedKingdom,thefooddeliverymarketisnowfourtoseventimeslargerthantheywerein2018(Mckinsey&Company,2021).5Ithasbeenwellestablishedinseveralpublicationsthatconceptuallyagoodcannotbedigitallydeliveredsee(IMF,OECD,UNCTADandWTO,2023).
6AnexampleofthisbytheBEAappearslaterinthepaper.
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Figure2:SimplifiedvisualisationofDigitalSUT
Source:IMF.
Importantlythebreakdownofthenatureofthetransactionintorows(fordigitallyordered–YellowshadedrowsinFigure2)andcolumns(fordigitallydelivered–Colum’s‘T’inFigure2)allowsthecompilertorecordallthedifferentinteractionsbetweenproducersandconsumersasallfourorderinganddeliverypossibilitiesare
represented.Theseare:
i)digitallyorderedanddigitallydelivered.
ii)digitallyorderedandnon-digitallydelivered.
iii)non-digitallyorderedandnon-digitallydelivered;and
iv)non-digitallyorderedanddigitallydelivered.
Thisavoidstheneedformanyadditionalrowsspecifyingthenatureofdeliveryforeachofthedifferentmethods
ofordering.
b.Digitalproducts
Fromaproductperspective,theframeworkcompilesaggregateexpenditureonICTgoodsanddigital
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servicesthatfallwithintheSNAproductionboundary.Thisincludesallproductsthat“mustprimarilybeintendedtofulfilorenablethefunctionofinformationprocessingandcommunicationbyelectronicmeans,includingtransmissionanddisplay”(UNSD,2015).Thisdefinitionistakenfromthe‘alternativestructures’section(part5)oftheCentralProductClassification-CPC2.1(UNSD,2015)andisconsideredtheproductequivalenttotheICTsectoroutlined
intheInternationalStandardIndustrialClassification(ISICRev.4)(UNSD,2008).
7ICTgoodsanddigitalservicescorrespondtotheCPCRev.2.1listofICTproducts(UnitedNations,2015).
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IntheconventionalSUTs,ICTgoodsanddigitalservicesthatmakeupthealternativestructuremayberecordedacrossmanyproductrows.Assuch,portionsoftheseproductrowsshould,inprinciple,beaggregatedtoformtwohigh-levelrows:ICTgoodsanddigitalservices
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.Anexceptiontothisisthetwoproductrowswhichseparatelyrecordtwospecificdigitalservices;digitalintermediationservices(DIS)andcloudcomputingservices(CCS)
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.Bothproductsareofconsiderablepolicyinterest,butdespitethisneitherisseparatelyrecordedinthecurrentstandardsforproductclassification
10
.Therefore,informationontheproductionandconsumptionofthese
productsiscurrentlyscarce.
ByaggregatingICTgoodanddigitalservices,aneasilyinterpretableindicator,representativeoftheincreasingimportanceoftheseinputstotheproductionprocessiscreated.Similarly,theincreasingleveloffinalconsumption,bothgovernmentandhousehold,onICTgoodsanddigitalservicesiseasilyrepresented.Whilebyseparatelyidentifyingthetwospecificproducts(CCSandDIS)businessesinvestmentdecisionsandtheswitchtopurchasesmadeviaindependentthirdparties,madepossibleviatechnologicaladvancementcanbebetter
represented.
c.Digitalindustries
The‘who’perspectiveoftheDigitalSUTsrelatestothederivationofaggregatesfornewdigitalindustries.Theseindustriesareshowninseparatecolumnstore-aggregatetheoutputandvalueaddedofunitsinawayotherthantheirunderlyingproductiveactivity
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.Atpresent,sevendigitalindustrieshavebeenidentified:
.Digitallyenablingindustries:Thisincludesunitsthatproducegoodsandservicesthatenablethedigitaltransformationtooccur,suchasITequipment,computersoftwareandtelecommunicationservices.ThisindustrycategorycorrespondstotheICTsectoridentifiedwithintheInternationalStandardIndustrialClassification(ISICRev.4)(UNSD,2008)
.DIPschargingafee:Thisincludesunitsthatoperateonlineinterfacesthatfacilitate,forafee,thedirectinteractionbetweenmultiplebuyersandmultiplesellers,withouttheplatformtakingeconomicownershipofthegoodsorrenderingtheservicesthatarebeingsold(intermediated).Exampleswouldincluderideshare,onlinereservationserviceproviders.
.Dataandadvertisingdrivendigitalplatforms:Thisincludesunitsoperatingexclusivelyasdigitalplatformswhosemainsourceofrevenueiseitherthesaleofdataproducedusinginformationcollectedfromtheplatformand/orthesaleofadvertisingservicesusingtheplatformforadvertising.Exampleswouldincludemostsocialmediaplatformsandinformationsharingsites.
8Thissplitintotworowspartiallyrelatestothemeasurementofgoodsandservicesbeingdigitallydelivered.Whiletheconceptofdigitallyorderedextendstoallproductsincludinggoodsthisisnotthecaseforthosethataredigitallydelivered.AsintheHandbookonMeasuringDigitalTrade,itisassumedthatgoodscannotbedigitallydelivered.Therefore,whilealmostallproductscanbeordereddigitallyandmoreandmoreservicesarebecomingavailabletobedeliveredonadigitalbasis,goodsarestillconsideredtobedeliveredonanon-digitalbasisonly.
9Infigure2,thesearerepresentedastheblueandorangeshadedrowsrespectively.
10Arevisiontotheinternationalproductclassification(CPC2.1)iscurrentlyunderway,undertheauspicesoftheUnitedNationsExpertGrouponinternationalstatisticalclassifications.ThisrevisionwillexplicitlyacknowledgeCloudComputing
ServicesandIntermediationServicesasastandaloneclassofproducts.
11Infigure2,thesearerepresentedasthegreenshadedcolumns.
10
.Producers’dependentonintermediationplatforms:Thisincludesunitsthatsellmostoftheirgoodsorservicesviatheintermediationplatformsmentionedabove.Examplesincludedriverswhoobtainbusinessviarideshareplatformsorhandcraftproducerswhorelyonmarketplacewebsitestoselltheirgoods.
.E-tailers:Thisincludestradersengagedinpurchasingandresellinggoods(i.e.retailers)whoreceivemostoftheirordersdigitally.
12
.Producerspredominatelyprovidingfinancialandinsuranceservicesdigitally.Thisincludesfinancialserviceproviders,includinginsurance,reinsurance,andpensionschemes/funds,whichareoperatingpredominantlyonline,withlimitedornoavenuestointeractwithconsumersphysically.Examplesincludeonlineonlyfinancialserviceprovidersanddigitalpaymentproviders.
.Otherproducersonlyoperatingdigitally.Thisincludesunitsoperatingexclusivelyonlinethatarenotincludedinoneoftheprevioussixdigitalindustries.
Thedigitalindustriesclassifyproducersbyhowtheyutilizedigitaltechnologieswithintheirbusinessmodels,ratherthanthefundamentaltypeofeconomicactivityundertaken
13
,whichisthebasisforclassificationintheconventionalSUTs
14
andothereconomicstatistics.Forexample,thismeansthattwoeconomicentitiesthatarecurrentlyclassifiedinseparateISICindustriesduetotheirfundamentaleconomicactivity(e.g.,anonlineonlynewspaper-publishingservices,andanonlineonlyeducationprovider-educationservices),willbeplacedinthesamedigitalindustrywithintheDigitalSUTssincebothunitsareexclusivelyreceivingordersdigitallyanddigitallydeliveringtheirservice.Inthisexamplebothwouldbeplacedtogetherin“otherproducersoperating
digitally”.
4.PolicyareasthattheDigitalSUTscanhelptoinform
Manyareasofeconomicpolicyarebeingsignificantlyimpactedbydigitalization.Whiletheproductionofasinglenumber,representativeoftheentire“digitaleconomy”mightbeeasyforuserstounderstand(atleastinageneralsense),itisoflittlepolicyuse.Anincreaseoradecreaseingrowthofsuchanaggregatemaybeattributabletoanynumberofthings.Asanalternative,theDigitalSUTsframeworkyieldsasuiteofdetailedindicatorsthatcan
beusedtodeveloppolicyinthefollowingareas(amongothers).
a.Taxation
Digitalizationhasprovidedgreaterscopeforfirmstoexportproductstomarketswithouthavingaphysicalpresenceinthatmarket.Thisabilityto“scalewithoutmass”(OECD,2018)affordedbytheadvancementofdigitaltechnologyhasresultedininternationaltaxrulesbasedona“brick-and-mortar”economicenvironment,nolongerbeingfitforpurpose.Besidescorporatetaxation,rapiddigitalizationhasalsocreatedconsiderablechallengesfor
indirecttaxationframeworksbothgloballyanddomestically.OftenValue-addedtax(VAT)isthesinglelargest
12This“majority”isfromtheperspectiveofvalueofsales.Thatis,aunitisane-tailerifthevalueoftheirsalesviadigitalorderingmakesupmostoftheirtotalsales.
13Theexceptionisthedigitallyenablingindustrieswhereunitsareclassifiedbasedontheproductstheyareproducing.
14ThisbasisforclassificationintheSUTsfollowssimilarpracticesintheclassificationofgroups,sections,anddivisionsintheinternationalindustryclassification,wherebythe“actualproductionprocessandtechnologyusedbecomelessimportantasacriterionforgroupingactivities”(UNSD,2008).
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sourceofindirecttaxrevenues(OECD,2022).However,thecollectionofVATondigitalplatformswithlimitedornophysicalpresenceinthecountryofconsumptioncanimpacttheoverallleveloftaxcollected,havingsomeformofindicatorofthelevelofValueAddedthatisbeingproducedbytheseunitscangreatlyassisttaxationauthoritieswithunderstandingtheirtaxbase
15
.Additionally,manydevelopingcountrieshavebeguntoinstitutevariousindirecttaxationlegislationrelatedtothedigitaleconomy,assuch,indicatorsondigitalactivitywill
improvetheforecastingofrevenueassociatedwiththesenewtaxationpolicies(UNCTAD,forthcoming).
b.Competition
ThepolicyimpactscausedbytheemergenceofDIPsonthetraditionalconsumer-producerparadigmcannotbeoverstated.Whileintheory,DIPscreateagreaterlevelofcompetition,whichisadvantageousforconsumersandtheefficientallocationofresources,themarketcanstillbemanipulatedifthesizeandreachofasingleDIPgrowstoolarge.Intheseinstances,DIPscanengageinanticompetitiveconductandrentseekingduetotheirmarketpower.Examplesofthisincludeartificiallyincreasedpricesforthefinalconsumer(AustralianCompetitionand
ConsumerCommision,2022)orreducedrevenueforproducers(TheNewYorkTimes,2023).
c.Skillsandlabourforce
Mostindustrieshaveincorporateddigitalizationintotheirproductionprocessestoatleastsomedegree.Thisdoesnotonlyimpacttheproductsusedasinputsbutalsotheleveloflabourrequired.Informationonthesechanginginputsintoproduction,includingindicatorsonincreasesordecreaseintheproportionoflabourrequiredtoundertakeproduction,canassistthegovernmentindesigningpoliciesthatensureworkersenteringtheworkforcehavetheappropriateskills.Additionally,theDigitalSUTscanprovidegreaterinformationonthecontributiontooveralloutputofworkersastheyshifttomoremobilelabourand“gig”work.ThistrendisalreadywellestablishedwithdatafromtheUKshowingthatthepercentageofpeoplewhofoundworkviaanonlineplatformincreased
from11.5%in2016to22.6%in2021(Spencer&Huws,2021).
d.Internationaltrade
Digitaltrade,definedas“allinternationaltradethatisdigitallyorderedand/ordigitallydelivered”(IMF,OECD,UNCTADandWTO,2023)isbecominganincreasinglyimportantcomponentoftradeagreementsbetweencountries.Forexample,in2020,therewere113suchagreementswithdigitaltradeprovisions,representing34%ofallagreementsnotifiedtotheWorldTradeOrganization(WTO)(LopezGonzalez,Sorescu,&Kaynak,2023).
Greaterinformationonimportsandexportsthataredigitallyorderedordeliveredisthereforeofrelevance.
15Importantly,aspointedoutbythehandbookonmeasuringdigitaltrade,VATinformationitselfcanbeaninsightfulsourcewithwhichtomeasurecertainelementsofdigitallyorderedtradeanddigitallydeliveredtrade(IMF,OECD,UNCTADandWTO,2023).
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e.Businessinvestmentandservicedelivery
Theinternethasenabledeasiercommunicationandaconnectednesspreviouslyunseen.Duetothis,servicesthatpreviouslyhadtobeprovidedface-to-faceareincreasinglydelivereddigitally.Suchatrendimpactsinvestmentdecisionsfortheprivatesectorinarangeofwaysincludingbeyondtheappropriatesizeoftheirphysicalfootprint.Forexample,achangingfocusonfulfilmentcentresratherthantraditionalstores(Walmart,2022).Suchdecisionsarenotlimitedtotheprivatesectoranddevelopedeconomies.SeveralAfricancountrieshavebeguntheprocessofimprovinggovernmentservicedeliverythroughdigitalization.NamibiaandGabonarebothdevelopingacentralizeddigitalplatformthatwillprovideeasieraccesstogovernmentservicesincludingacceptinge-payments,Kenyahassuccessfullyintroducedadigital“iTax”portal,whileTanzaniahasinstigatedane-governmentauthority
(https://www.ega.go.tz/)
tooverseethegovernmentdigitaltransformation(EuropeanInvestmentBank,2021).Providinginformationondigitalorderinganddigitaldelivery,especiallyfromtheperspectiveofatime
seriescaninformusersonwhichserviceshaveseenaquickerorlargerpickupinbeingprovideddigitally.
5.Priorityindicatorsfordevelopingcountries
TheDigitalSUTsframeworkwasconstructedwiththepurposeofbeingappliedtoSUTs.DuetothecomprehensiveandexhaustivenatureoftheSUTs,thisapproachwasseenasthebestopportunitytocaptureallfacetsofdigitalizationintheecono
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