Artificial Intelligence and the Redefinition of Comparative Advantage in Global Trade: A New Framework for Competitiveness in the Digital Era

This project examines how artificial intelligence (AI) is reshaping traditional notions of comparative advantage and global competitiveness in the digital era. Moving beyond classical factor-based trade theories, the study proposes a new analytical framework that incorporates AI-driven productivity, automation, data intensity, and technological capabilities as key determinants of trade specialization. Using a combination of theoretical analysis and empirical evidence drawn from secondary macroeconomic and technology datasets, the research explores how AI adoption alters sectoral productivity, labor–capital dynamics, and countries’ positions within global value chains. The paper highlights how digital capabilities increasingly substitute for traditional cost advantages, leading to structural shifts in trade patterns across advanced and emerging economies. The study contributes to international trade and development literature by offering a contemporary perspective on competitiveness in an AI-driven global economy. It provides policy-relevant insights for governments and institutions seeking to design trade, industrial, and innovation strategies aligned with the realities of digital transformation.