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1. Promoting E-Invoicing Interoperability in ASEAN: Overcoming Barriers to Trade Digitalisation

Author:
Mahirah Mahusin and Hilmy Prilliadi
Publication Date:
12-2024
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Electronic invoicing (e-invoicing) is a vital component of paperless trading, delivering substantial cost savings and efficiency gains for businesses. The ASEAN e-invoicing market has experienced notable growth, spurred by initiatives from tax authorities, public procurement agencies, and business digitalisation programmes. However, adoption across the region still faces significant challenges. To address these barriers, ASEAN has introduced initiatives to foster interoperability, develop common standards, and support regional integration. By prioritising standardisation, offering government support, and encouraging private sector adoption through financial incentives and capacity-building efforts, ASEAN can accelerate trade digitalisation and enhance economic integration across the region.
Topic:
Trade, ASEAN, Supply Chains, Digitalization, and Electronic Invoicing
Political Geography:
Asia

2. Trade Balances and International Competitiveness in Cyber-physical, Digital Task-intensive, ICT Capital-intensive and Traditional Industries

Author:
Alexandra Bykova and Roman Stöllinger
Publication Date:
05-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In this report, we analyse the international competitiveness of the EU in four industry groups over the period 1995-2018. The groups are delineated by specific factor intensities, where these intensities are assessed from digital tasks performed by labour services and ICT capital stocks. The EU’s positions relating to trade balances, revealed comparative advantages and unit value ratios are assessed relative to its main competitors, such as the US, China, Japan and South Korea. The trade specialisation patterns confirm EU advantages in traditional industries, which still represent the largest part of global trade, and in the group of digital task-intensive industries. In the cyber-physical group of industries, which are characterised by both high digital task and ICT capital intensities, the EU records a trade deficit, although this has been receding in recent years. Competitiveness indicators depict heterogeneity among EU countries. The loss of international competitiveness for some technology front-runners is a worrying sign. On the positive side, however, a reduction in trade deficits or an improvement in product quality and market shares is evident for certain EU countries, especially in the Central European region.
Topic:
International Trade and Finance, European Union, Trade, Digitalization, and International Competition
Political Geography:
Japan, China, Europe, Asia, South Korea, and United States of America

3. Is there Eurasian Connectivity without Europe?

Author:
Niva Yau
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
Tucked between Russia, Iran, and China, Central Asia is now desperately looking for solutions to cushion the impacts of global tension on its fragile economies, which are deeply tied to sanctions against Russia and a local production slowdown as China recovers from its zero COVID policy. While European diplomacy has come at a crucial time, its Central Asian policy is ambiguous, and commitments misplaced. Central Asia is continuously perceived by the EU as a region in need of developmental assistance, which leads to European regional policies that focus on digitalization and climate issues. What Central Asia needs is the establishment of concrete logistical connectivity that will enable efficient flow of products across Eurasia.
Topic:
Climate Change, Diplomacy, Economics, European Union, Connectivity, and Digitalization
Political Geography:
Russia, China, Europe, Iran, Central Asia, Eurasia, and Asia

4. Tourism Exports, Digitalisation, and Employment during the COVID-19 Pandemic: The Case of Indonesia

Author:
Mini P. Thomas, Archana Srivastava, and Keerti Mallela
Publication Date:
12-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study aims to examine the relationship amongst tourism exports, digitalisation, and employment in tourism and allied sectors of Indonesia; and to throw light on how low-, medium, and high-skilled employment have been impacted during the coronavirus disease (COVID-19) pandemic. We include both transport service exports and travel service exports within the ambit of tourism exports. Digitalisation is defined in terms of digitally deliverable services. The study classifies employment at varying skill levels on the basis of educational qualifications, and occupation-based skill classification is used as a robustness check. The COVID-19 pandemic is captured with the help of a time dummy variable and also using the Stringency Index. The study estimates the bound testing approach to the autoregressive distributed lag (ARDL) model using quarterly time series data, and the autoregressive moving average with exogenous variable (ARMAX) model using monthly time series data, to understand the nature of the long-run relationship and short-run dynamics amongst the variables of interest. The study establishes the presence of cointegration amongst employment, tourism exports, digitalisation, and other control variables in all four cases – total employment, and low-, medium-, and high-skilled employment. We find tourism exports to have a positive and significant impact on employment, except high-skilled employment. Digitalisation of tourism exports is found to have a significant but negative impact on the total, low-skilled and medium-skilled employment. The COVID-19 pandemic is also found to have a negative and significant impact on total employment in Indonesia, with low-skilled employment being the worst affected
Topic:
Tourism, Employment, Exports, COVID-19, and Digitalization
Political Geography:
Indonesia, Asia, and Southeast Asia

5. Beyond India’s Lockdown: PMGKY Benefits During the COVID-19 Crisis and the State of Digital Payments

Author:
Alan Gelb, Anurodh Giri, Anit Mukherjee, Ritesh Rautela, Mitul Thapliyal, and Brian Webster
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
India imposed a lock-down in response to the COVID-19 pandemic in March 2020 and began a gradual re-opening in June. A telephonic survey in April examined the early effectiveness of information and the massive PMGKY social protection program (Policy Paper 217). This paper analyzes a second-round survey, conducted six months later. Logistical and information constraints had relaxed, and incomes and jobs had begun to stabilize for some. There were not strong indications of differential access to benefits by income or location, but constraints to providing public employment had tightened in the face of increased demand, resulting in greater job rationing. Men made more use of digital channels, with a clear smartphone ownership hierarchy between men and women; this divide carried over into the growing autonomous use of digital payments which is conditioned on access to smartphones. Survey results confirm strong local agglomeration effects in digital payments, mirroring the general pattern with higher use in states hosting India’s major technology hubs. At the same time, trust-based concerns reduced the use of assisted digital cash-outs through agents.
Topic:
Economics, Pandemic, COVID-19, and Digitalization
Political Geography:
India and Asia

6. Digitalisation for Sustainable Infrastructure: The Road Ahead

Author:
Carlo Secchi and Alessandro Gili
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
In today’s tumultuous and fast-changing times, digitalisation and technology are game changers in a wide range of sectors and have a tremendous impact on infrastructure. Roads, railways, electricity grids, aviation, and maritime transport are deeply affected by the digital and technological transition, with gains in terms of competitiveness, cost-reduction, and safety. Digitalisation is also a key tool for fostering global commitment towards sustainability, but the race for digital infrastructure is also a geopolitical one. As the world’s largest economies are starting to adopt competitive strategies, a level playing field appears far from being agreed upon. Why are digitalisation and technology the core domains of global geopolitical competition? How are they changing the way infrastructure is built, operated, and maintained? To what extent will road, rail, air, and maritime transport change by virtue of digitalisation, artificial intelligence, and the Internet of Things? How to enhance cyber protection for critical infrastructure? What are the EU’s, US’ and China's digital strategies?
Topic:
Science and Technology, Infrastructure, European Union, Sustainability, and Digitalization
Political Geography:
China, Europe, Asia, North America, and United States of America

7. Decisionmaking at the Speed of the Digital Era

Author:
John Schaus and Laura Bocek
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
The United States has stated it is in a strategic competition with China. Analysts and actors identify the need to rapidly iterate through concepts and capabilities to develop new, more effective means of engaging in that competition. At present, however, the Department of Defense underutilizes publicly available data and the software development community to build tools that enable faster modeling, hypothesis testing, and variability analysis than traditional wargaming or modeling alone. This brief describes the speed and utility of developing a simple software tool to stress test a hypothetical People’s Republic of China (PRC) surprise attack against U.S. facilities in the Indo-Pacific.
Topic:
Hegemony, Strategic Interests, Digitalization, and Competition
Political Geography:
China, Asia, North America, and United States of America

8. The Digital Silk Road and China’s Influence on Standard Setting

Author:
Alex He
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
China is striving to become a leader in international standard setting, and the Digital Silk Road, part of China’s Belt and Road Initiative to expand its global infrastructure and markets, is key to realizing this goal. Both roads depend on standard connectivity, fuelled by Chinese private companies that are the driving force behind China’s growing role as a leader in technology development and shaping standards in both domestic and global markets. However, China faces strong competition to gain more influence in international standard-setting bodies, which are dominated by the European Union and the United States.
Topic:
Infrastructure, Digital Economy, Trade, Digital Culture, Silk Road, and Digitalization
Political Geography:
China, Europe, Asia, North America, and United States of America

9. Digitalization of Special Economic Zones in China

Author:
Jie (Jeanne) Huang
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
China Studies Centre, The University of Sydney
Abstract:
Special Economic Zones (SEZ) have become the forefront in China to test legal and technological reforms for digital trade. This chapter explores three cutting-edge case studies in China’s SEZs: the Beijing blockchain-based Single Window deposit box; newly established big data exchanges in Beijing, Tianjin, and Shanghai SEZs; and pilot projects in financial, medical care and automobile industries to flow data across the border in the Shanghai SEZ. It scrutinizes China's experiments in the context of its applications to join CPTPP and DEPA. It argues that the development of Chinese domestic law for digital trade is shifting away from the traditional paradigm that uses international commitments to push domestic reform or make domestic law according to international law. The development of Chinese domestic law for digital trade relies much more on China’s domestic needs than what FTAs negotiations require. FTAs are increasingly becoming a tool for China to shape international law rather than a benchmark for legislating domestic Chinese law.
Topic:
Development, Economics, International Trade and Finance, Hegemony, and Digitalization
Political Geography:
China and Asia

10. Searching for the Binding Constraint to Digital Financial Inclusion in Pakistan: A Decision Tree Approach

Author:
Imran Khan and Karrar Hussain Jaffar
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
Over the last decade, Pakistan has seen improvements in the coverage of its networks of bank branches, ATMs, and mobile money agents. However, the country is lagging behind comparator countries when it comes to the financial inclusion of its population; according to the latest estimates, barely 20 percent are currently included. By using the Claessens and Rojas-Suarez (2020) decision tree methodology, this paper assesses the potential demandand supply-side constraints limiting the usage of digital payment services to identify which constraints are binding. Our main finding is that Pakistan’s institutional weaknesses constitute the most important binding constraint. These weaknesses have incentivized the creation of a sizable informal economy that has resulted in a preference for cash over the use of formal financial channels for the majority of the population. Reflecting institutional deficiencies, the imposition of a withholding tax on financial transactions undertaken by individuals who did not file tax returns has further encouraged a move toward cash and away from digital finance. On the demand side, Pakistan lags behind comparable countries on various indicators such as technical literacy, awareness about the functionality of products, and social inclusion of women. Nevertheless, we find that these constraints are severe only for specific subpopulations. Consistent with our conclusion that institutional weaknesses, the binding constraint, have created deep incentives to remain informal, a considerable proportion of mobile phone–owning financially excluded individuals continue to choose to be financially excluded in spite of having high levels of technical literacy, functional awareness, and trust.
Topic:
Finance, Innovation, Banking, and Digitalization
Political Geography:
Pakistan and Asia