This study aims to fill this gap in the literature by empirically examining the impact of the Internet on tax instability through international trade channels. The findings suggest that the increase in Internet access has a negative impact as countries' participation in international trade increases. The Internet, participation in international trade and tax instability. This is despite the fact that it decreases as the concentration of export products increases. Internet penetration has a negative and significant effect on non-resource at higher concentrations of export products. The magnitude of the disincentive effect of the Internet on non-resource is greater in less diversified countries than in more diversified ones.

The study investigates the impact of the Internet on tax instability, particularly through the international trade channel. The findings suggest that the adoption of the Internet also contributes to the stabilisation of tax revenues, particularly through national participation in international trade, thus increasing the potential benefits of the Internet. This study complements existing research on the impact of Internet access on public finances. It finds that increased Internet access changes the structure of public revenues, reducing the state's dependence on resource revenues and favouring non-resource revenues.

And What we can learn from this article. The degree of negative impact increases with the degree of country participation in international trade. These suggest that the impact of the Internet on non-resource TRI is truly translated through the international trade channel. And countries with enhanced international trade participation enjoy a lower non-resource TRI due to rising internet penetration.

Thus, the higher the international trade participation, the greater the negative impact of Internet penetration on non-resource TRI. The findings suggest that Internet use has a negative and significant impact on TRI. And the empirical results suggest that the negative impact of the Internet on TRI works through the international trade channel: the magnitude of the negative impact of the Internet on TRI increases as countries increase their level of participation in international trade.

Moreover, in countries with higher levels of tax reform and higher concentrations of exports, greater Internet access suppresses TRI, and as the level of tax reform increases, the negative impact of Internet penetration on tax revenues becomes more significant and export concentrations rise.

China's tax legal system is based on the traditional industrial economy and does not sufficiently take into account the characteristics of data assets and their development trends. This has led to a significant tax burden gap between data assets and traditional factors of production, resulting in an unfair tax burden.

As the scale of data asset transactions continues to grow, tax leakage from data assets is also serious. Therefore, the issue of how to determine the tax rate of data assets, which can generate value and bring income and profits, has attracted much attention from both the taxation theoretical and practical circles.

The above-cited studies on patterns of cross-border e-commerce come to very similar conclusions. Overall, cross-border e-commerce significantly reduces distance-related trade costs, mainly because information costs are reduced. The promise of the "death of distance" may to some extent be replaced by a strengthening of cultural and linguistic distance.

Source: Gnangnon S. K. Internet, Participation in International Trade, and Tax Revenue Instability // Journal of Economic Integration, 2022, vol. 37, issue 2, 267-315