INSTITUTIONALIZATION OF DIGITAL PLATFORMS IN THE SYSTEM OF INTERNATIONAL ECONOMIC RELATIONS

Abstract

This paper investigates the institutionalization of digital platforms within the system of international economic relations (IER) under accelerating global digitalization. It contends that platforms have evolved from tools of electronic commerce into comparatively stable institutional actors that shape cross-border market access, define standards of exchange, and implement algorithmic coordination of transactions across jurisdictions. Institutionalization is conceptualized as a multi-level process that contributes to a hybrid architecture of global economic governance, in which private platform rule-making interacts with public national and supranational regulation. Methodologically, the study combines institutional and  systems approaches with comparative analysis, analytical generalization, and logical modeling. Causal reasoning is operationalized through the chain «platform → rule/algorithm → participant behavior → outcomes for IER», which links platform design (terms of use, access criteria, pricing and commission  rules, ranking and recommendation systems, reputation mechanisms, data policies, and dispute-resolution procedures) to changes in incentives, visibility, transaction costs, and the dependency of firms and users on platform infrastructure. The article proposes a multi-level framework that distinguishes four mutually reinforcing dimensions of platform institutionalization: normative (rules of access, standards, compliance and enforcement), technological (algorithmic control embedding rules into digital architecture and automating monitoring), organizational (ecosystem formation through integrated payments, logistics, advertising and analytics), and market (network effects and scale economies that reinforce market power and reshape the distribution of value along global value chains). Drawing on evidence reported by UNCTAD, WTO and OECD, the paper highlights the expansion of platform mediated operations, the intensification of digital market concentration, and the rising macroeconomic weight of the ICT sector. The findings suggest that platform institutionalization reconfigures trade in goods and digitally delivered services, affects cross-border labour participation, and raises policy challenges related to competition, digital fairness, and sustainability.