Bridging the Digital Divide and Supporting Increased Digital Trade: Scoping Study

This scoping study examines the growth of the digital economy and digital trade, analyzing how these shifts create both opportunities for economic leapfrogging and risks of a widening 'digital divide' for developing and emerging economies.

• The digital economy is defined by the use of digital technologies to facilitate business transactions—including production, exchange, and consumption—and encompasses e-commerce, online payments, digital media, and digitally delivered services. This is expected to intensify with the emergence of artificial intelligence, cloud computing, and autonomous vehicles.
• Digital trade involves using digital tools to exchange goods and services across borders via digital delivery or intermediation, relying on global data flows. The US, EU, and China are currently competing to dominate these sectors, with China utilizing a highly interventionist industrial policy to catch up to the US.
• The 'digital divide' has evolved from a focus on Internet connectivity to a conceptualization of the ability of developed countries to control the direction of technological change and capture the majority of its benefits. This allows firms from advanced economies to use network effects and first-mover advantages to dominate new sectors.
• Digital transformations may weaken the position of developing countries within global value chains regarding value capture, control, and creation. This is further aggravated by leading digital firms shifting profits between jurisdictions, which impacts public revenues in developing nations.

APA

South African Institute of International Affairs (2018). Bridging the Digital Divide and Supporting Increased Digital Trade: Scoping Study. https://saiia.org.za/research/bridging-the-digital-divide-and-supporting-increased-digital-trade-scoping-study/

Chicago

South African Institute of International Affairs. Bridging the Digital Divide and Supporting Increased Digital Trade: Scoping Study. 2018. https://saiia.org.za/research/bridging-the-digital-divide-and-supporting-increased-digital-trade-scoping-study/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Bridging the Digital Divide and Supporting Increased Digital Trade: Scoping Study |date=20 August 2018 |url=https://saiia.org.za/research/bridging-the-digital-divide-and-supporting-increased-digital-trade-scoping-study/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2018bridging, author = {{South African Institute of International Affairs}}, title = {{Bridging the Digital Divide and Supporting Increased Digital Trade: Scoping Study}}, institution = {South African Institute of International Affairs}, year = {2018}, month = aug, url = {https://saiia.org.za/research/bridging-the-digital-divide-and-supporting-increased-digital-trade-scoping-study/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }