The impact of restrictions digital services trade on innovation A case study of Saudi Arabia during : 2014-2024

Abstract

This study examines the causal and long-run effects of digital services trade restriction policies on the Global Innovation Index in Saudi Arabia during the Vision 2030 period (2014– 2024). Using the Autoregressive Distributed Lag (ARDL) approach, it analyzes short- and long-run dynamic relationships between digital trade policies and key innovation determinants, including digital infrastructure and institutional quality. The findings show that open innovation and crossborder flows of knowledge and technology significantly promote innovation, while digital trade restrictions have adverse effects. The results further indicate that institutional and digital factors influence innovation mainly in the long run, and that sustained investment in high-speed digital infrastructure enhances innovative performance