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Foreign barriers hinder US digitally sensitive industry growth: state study
A REPORT from the US International Trade Commission (USITC) report finds foreign barriers stymie opportunities in US digitally sensitive industries, responsible for a 3.4 to 4.8 per cent boost in country's economy.
The study, conducted at the request of the US Senate, concludes that domestic commerce and international trade conducted via the Internet has "far-reaching effects on the US economy that have transformed the ways businesses operate and interact with one another.
Among the findings in the report are that enhanced productivity and lower international trade costs in digitally intensive industries due to digital trade likely resulted in an estimated US$517.1 billion to $710.7 billion increase in US GDP in 2012.
US real wages were likely higher by 4.5 per cent to 5 per cent, and the effect on US total employment ranged from no change to an increase of 2.4 million full-time equivalents (FTEs).
The recent report found that US digitally intensive firms sold $935.2 billion in products and services, and purchased $471.4 billion in products and services over the Internet.
The Commission's survey of US digitally intensive firms found that internal communications and online ordering of products and services are the leading ways firms use the Internet.
Critically, the report estimates that losing access to the Internet would reduce productivity 15 per cent or more for more than 40 per cent of firms in digitally intensive industries.
Business-to-business communications ranked as the largest contributor to the productivity benefits of the Internet; selling online products or services was tied with ordering online products or services as the second largest.
Online trade is a small part of US exports and imports of both digitally and physically delivered products and services. Digitally intensive firms exported $222.9 billion and imported $106.2 billion in products and services ordered online in 2012.
The report also found that the removal of foreign barriers to digital trade in digitally intensive industries would likely result in an estimated $16.7 billion to $41.4 billion increase (a 0.1 per cent to 0.3 per cent increase) in US GDP.
US real wages would likely be 0.7 per cent to 1.4 per cent higher, and the effect on US total employment would range from no change to an increase of 0.4 million FTEs.
The study, conducted at the request of the US Senate, concludes that domestic commerce and international trade conducted via the Internet has "far-reaching effects on the US economy that have transformed the ways businesses operate and interact with one another.
Among the findings in the report are that enhanced productivity and lower international trade costs in digitally intensive industries due to digital trade likely resulted in an estimated US$517.1 billion to $710.7 billion increase in US GDP in 2012.
US real wages were likely higher by 4.5 per cent to 5 per cent, and the effect on US total employment ranged from no change to an increase of 2.4 million full-time equivalents (FTEs).
The recent report found that US digitally intensive firms sold $935.2 billion in products and services, and purchased $471.4 billion in products and services over the Internet.
The Commission's survey of US digitally intensive firms found that internal communications and online ordering of products and services are the leading ways firms use the Internet.
Critically, the report estimates that losing access to the Internet would reduce productivity 15 per cent or more for more than 40 per cent of firms in digitally intensive industries.
Business-to-business communications ranked as the largest contributor to the productivity benefits of the Internet; selling online products or services was tied with ordering online products or services as the second largest.
Online trade is a small part of US exports and imports of both digitally and physically delivered products and services. Digitally intensive firms exported $222.9 billion and imported $106.2 billion in products and services ordered online in 2012.
The report also found that the removal of foreign barriers to digital trade in digitally intensive industries would likely result in an estimated $16.7 billion to $41.4 billion increase (a 0.1 per cent to 0.3 per cent increase) in US GDP.
US real wages would likely be 0.7 per cent to 1.4 per cent higher, and the effect on US total employment would range from no change to an increase of 0.4 million FTEs.
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