The Impact of Digitalization on Export Diversification: Analyzing Export Product and Partner Variety Extensive Margins

다국어 초록 (Multilingual Abstract)

This study examines the impact of digitalization on export diversification across two dimensions: Product Variety Extensive Margin (ProVEM) and Partner Variety Extensive Margin (ParVEM). Using a 10-year panel dataset of national exports, this analysis evaluates the effects of internet usage and e-government on export diversification.
The analysis of ProVEM finds that internet usage is a significant driver of export product diversification, with pronounced effects in upper-middle-income countries and low- and medium-tech industries. However, its marginal impact diminishes once digital infrastructure reaches a saturation point. E-government supports product diversification in low- and medium-tech industries, highlighting the role of governance reforms in reducing trade barriers.
In the case of ParVEM, internet usage significantly enhances export partner diversification in high-income countries but remains insignificant in lower-income economies. This suggests that internet access alone is insufficient for expanding trade networks. E-government does not have an immediate effect on ParVEM, yet lagged model results indicate delayed positive effects, implying that institutional reforms may gradually contribute to the expansion of trade networks.
This study underscores the need for customized digitalization policies that account for both economic and sectoral differences. Investments in digital infrastructure and governance reforms are essential to fully leverage the benefits of digitalization and effectively promote export diversification.