The unseen side of trade digitalisation: Data inequality and the global economic divide

As our world becomes increasingly digital, the digital divide has widespread implications, and the least developed countries (LDCs) are most likely to be negatively affected. In addition to the three levels of the digital divide commonly explored in the literature (i.e. the access gap, differences in digital skills, and differences in beneficial outcomes), data inequality should be included as a new level of the digital divide. Data inequality can further be classified into three divides: access to data, representation of the world as data, and control over data flow.

With these divides as the primary markers for data inequality and using international trade and investment as guideposts for economic development, this report aims to highlight the potential implications that digital advancements in the international trade industry will have in terms of widening data inequality. Given that the least developed countries are most impacted by data inequality and that there is a positive relationship between data availability and international trade and investment, data inequality can exacerbate economic inequality as international trade becomes more digitalised.