Digital Trade Rules in Regional Trade Agreements and Bilateral Trade Value Added

This study examines how digital trade rules (DTRs) in Regional Trade Agreements affect bilateral trade value added (BTVA). Using a 2008–2020 panel of 42 exporters and 50 importers, TAPED rule indicators, ADB-MRIOTs, and PPML estimation, we distinguish value-added export intensity in digitally dependent sectors from an integrated economy-wide measure. Both rule breadth and depth significantly increase BTVA, with stronger effects for depth and for the integrated measure. The effects are amplified by higher trade costs, intellectual-property use, digital-service-trade dependence, and digital infrastructure. The findings extend DTR research from conventional trade outcomes to value-added creation and broader production-network responses.