The Influence of Digital Trade Restrictions on Citizen Engagement: Evidence from OECD Countries

Purpose - This study examines the impact of digital services trade restrictions on digital citizen engagement across 37 OECD countries. While prior research has focused on economic implications, the effect of these restrictions on citizen participation remains largely unexplored. Given the increasing reliance on digital platforms for governance, understanding how trade restrictions shape citizen engagement is essential. Design/Methodology/Approach - Using cross-sectional data from 2020 and 2022, this study employs OLS regression analysis to assess the relationship between the Digital Services Trade Restrictiveness Index (DSTRI) and the Digital Citizen Engagement Index (DCEI). The study further disaggregates DSTRI into five components to examine the individual effects. Given data limitations and the study’s focus on identifying structural relationships rather than changes over time, OLS is the most appropriate method. Findings - Higher digital trade restrictions, particularly in infrastructure and electronic transactions, are associated with lower levels of citizen engagement. Countries with stronger digital infrastructure and simplified online transaction processes exhibit higher participation. Intellectual property rights and general trade barriers show no significant effects. Research Implications - Excessive trade restrictions may limit public access to digital platforms, reducing citizen engagement. Strengthening digital infrastructure and simplifying transactions are key to fostering participation. This study offers insights for policymakers on balancing trade regulations with democratic accessibility.