Analyzing the influence of digital economic development on China's exports to RCEP member countries

Abstract

The influence of the digital economy on China's export trade with RCEP (Regional Comprehensive Economic Partnership) countries, becoming the growing importance in China's trade landscape. Through reviewing the literatures to define the digital economy and measure its development level, this paper will investigate how the digital economy affects China’s export trade both theoretically and practically. The study constructs an index to measure the digital economy's development in RCEP nations from 2011 to 2020, employing the entropy method and an extended gravity trade model in a fixed-effects panel regression to analyze the data. Investment in digital infrastructure, fostering innovation, and digitizing services is to boost China's trade with RCEP nations. Policy recommendations for China's digital economy and RCEP trade cooperation involve enhancing digital infrastructure, fostering trade relations through collaborative digital initiatives, and prioritizing the cultivation of digital talent to meet evolving demands and ensure sustainable growth.