Abstract

In this article, the effects of developments in the digital economy on the trade balance and, more specifically, the effects of the increase in internet use are examined. The increase in internet usage around the world and the resulting developments in the digital economy and the effects of these developments on the country's economy constitute the center of this study. At the same time, the effects of changes in the economic complexity index, which represents the information units and technological equipment behind the countries' export goods, on the trade balance are also examined. It was used in calculating individual internet use as an indicator of the digital economy and the Economic complexity index series as an indicator of knowledge accumulation. This study covers the years 2012-2021. In this study, the developed countries sample set was created using the High Income Group Countries filter in the World Bank's Databank tab. According to the Panel Regression results, a positive relationship was found between increases in GDP and Internet usage and the trade balance. Accordingly, increases in national income positively affect the foreign trade balance. Likewise, there is a positive relationship between the development of the digital economy and the foreign trade balance. On the other hand, a negative relationship was found between trade balance and economic complexity index.

Key words: Digital economy, Economic complexity index, Trade balance, Panel data analysis. JEL Codes: F10, F40, O30.

Article Language: EnglishTurkish