How does digitization contribute to the internationalization of services Peruvians?

Abstract

This research paper aims to study how digitisation contributes to the internationalisation of Peruvian services. The study covers two main axes, digitalisation and internationalisation of services. The VW RCA index has been used to highlight the categories of services that are most favourable for internationalisation and those that are less favourable and need improvement. After analysis, we find that financial and transport services are the sectors with the best comparative advantage, while public goods and services and insurance and pension services show a low comparative advantage. The factors that most directly affect the internationalisation of services are information intensity and consumer contact. Informationintensive services such as telecommunications, computing and information services need a strong digital economy to meet demand. Services with more consumer contact, such as insurance and pensions, as well as travel and tourism services, require an adequate level of English. In this respect, Peru does not perform well. Digitalisation influences the internationalisation of services in several ways, the three most important being digital infrastructure, human capital and public policies. With regard to digital infrastructure, indicators such as household digital penetration, internet availability and use, and the gap between the digital economy in urban and rural areas show that digital infrastructure is improving but has gaps. Secondly, the development of skilled human capital is central to the development of a country's scientific and technological research capacity in order to realise the dynamic links between science, competitiveness and service development on a global stage. Public policies play a very important role in the digitalisation for the internationalisation of Peruvian services. Continued public support for business R&D encourages companies to invest in innovations that can lead to innovations.