Digital Trade and Structural Transformation in Developing Economies: Opportunities, Constraints, and Policy Implications
DOI:
https://doi.org/10.69760/portuni.26040001Keywords:
Digital trade, structural transformation, economic development, developing economies, global value chains, export diversification, labor market transformation, financial inclusion, human capital development, digital economyAbstract
Digitalization has fundamentally reshaped the architecture of global trade. Unlike previous waves of globalization driven by industrial capacity and physical infrastructure, the current transformation is powered by data, platforms, and digital connectivity (Ahmadova & Mammadov, 2025b; UNCTAD, 2021). For developing countries, digital trade presents both an unprecedented opportunity and a structural challenge. This paper examines the relationship between digital trade and economic development, focusing on productivity growth, export diversification, labor market transformation, financial inclusion, and institutional adaptation. It argues that digital trade can become a strategic development tool, but only if supported by coherent policy frameworks, infrastructure investment, and human capital development (Mammadov et al., 2026; World Bank, 2022). Without such foundations, digital integration may reinforce inequalities rather than reduce them.
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