INTERNATIONAL TRADE IN THE COVID-19 OUTBREAK: IS THE DIGITAL ECONOMY WORKING?

Abstract

This paper presents the strengthening of the digital economy which acts as a stabilizer in the trade sector during the Covid-19 outbreak. In a contactless world, most interactions between customers and employees must occur virtually. While still making exceptions to some things, operating digitally is the only way to survive restrictions on activities by the government, including in the economic sector. The instructions for switching in a digitizing pattern are nothing new, they are simply brought into sharp focus. The most recent event, the Covid-19 outbreak, has accelerated a transformation, as evidenced by the sharp strengthening in the digitizing economic sector. Based on a literature study, the conclusions explain the opportunities for the digital economy to support the trade sector which experienced inconsistencies in growth tabulations during this outbreak. Through the perspective of neoliberalism, it can be used to explain how it is related to strengthening the digital economy with the stability of international trade at macro and micro levels.