Abstract
The growing digital economy has been a big boost to economic growth amidst the Covid-19 pandemic. Google, Temasek, and Bain report (2021) projects that the South-East Asia (SEA)’s internet economy will reach $360B by 2025. The e-commerce, food delivery, and digital financial services remain the primary growth drivers in the region. The early adopters have flourished during the pandemic with 60M new users starting to discover the functionality that technology can bring.
The raw material of digital transactions is the data used by both the big-tech and the homegrown-tech companies. Digital transactions are likely to involve cross-border data to streamline the transaction of goods and services, and therefore have a powerful effect on the rise of the digital marketplaces. Data flows across states and nations, and in the process, gets monetized and adds value to the global marketplaces. The use of these data in the exchange of personalized services to the users facilitates the emerging nations to leapfrog the digital progress.
Following the basic principle of the network externalities (Varian, 2010), the value of the digital products grows along with the size of the network. In an increasingly global digital space, only a few rich countries own the digital platforms and provide bulk of the digital services while the rest of the world acts as the service users or secondary innovators. With a balance of computational power tilting on the side of the economic powerhouses, developing countries have little or almost no power over the data being generated by their residents.
The raw material of digital transactions is the data used by both the big-tech and the homegrown-tech companies. Digital transactions are likely to involve cross-border data to streamline the transaction of goods and services, and therefore have a powerful effect on the rise of the digital marketplaces. Data flows across states and nations, and in the process, gets monetized and adds value to the global marketplaces. The use of these data in the exchange of personalized services to the users facilitates the emerging nations to leapfrog the digital progress.
Following the basic principle of the network externalities (Varian, 2010), the value of the digital products grows along with the size of the network. In an increasingly global digital space, only a few rich countries own the digital platforms and provide bulk of the digital services while the rest of the world acts as the service users or secondary innovators. With a balance of computational power tilting on the side of the economic powerhouses, developing countries have little or almost no power over the data being generated by their residents.
| Original language | English |
|---|---|
| Title of host publication | G20 Indonesia 2022 |
| Publication status | Published - 3 Nov 2022 |
