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Digital economy, technological progress, and city export trade.

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China's digital economy boosts urban export trade, especially in less developed regions. Technological progress is a key driver, highlighting the need for digital infrastructure investment.

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Area of Science:

  • Economics
  • Digital Economy
  • International Trade

Background:

  • The digital economy is transforming global trade dynamics.
  • China aims to foster a "dual circulation" development pattern, balancing domestic and international markets.
  • Understanding the digital economy's impact on urban export trade is crucial for economic strategy.

Purpose of the Study:

  • To analyze the influence of the digital economy on urban export trade in China.
  • To investigate the heterogeneous effects of the digital economy across different city types.
  • To explore the mediating role of technological progress in this relationship.

Main Methods:

  • Panel data analysis of 285 Chinese prefecture-level cities (2005-2019).
  • Mediating effect model to assess the role of technological progress.
  • Heterogeneity analysis based on geographical location and economic development level.

Main Results:

  • The digital economy significantly promotes urban export trade growth.
  • The positive impact is more pronounced in western/northeastern and lower-tier cities.
  • Technological progress acts as a significant mediator in the digital economy's effect on exports.

Conclusions:

  • Investing in digital economy infrastructure is vital for enhancing China's foreign trade.
  • Targeted policies are needed to address diverse city development needs.
  • Supporting R&D in information technology can drive high-quality trade development.