IDEAS home Printed from https://ideas.repec.org/a/bla/asiaec/v40y2026i2p147-183.html

The impact of government digital attention on trade in services

Author

Listed:
  • Jikai Ma
  • Guijun Lin
  • Jinyong Zhan

Abstract

With China elevating the “Digital China” initiative to a national strategy, we examine how government digital attention enhances international service trade competitiveness by reducing trade costs and increasing service tradability. Using digital‐related keyword frequency in government reports from prefecture‐level cities (2010–2022), we construct a government digital attention index and integrate it with service trade data from the China Business Yearbook. Employing a two‐way fixed effects model, we find that a 1% increase in government digital attention leads to a 3.06% rise in total service trade and a 2.12% increase in service trade exports. The findings remain robust after controlling for extreme values, adopting alternative variable measurement methods, and accounting for regional economic fluctuations. Moreover, we identify the development of digital infrastructure, the enhancement of human capital and education, and improvements in government governance efficiency as the primary mechanisms driving this effect. In regions with high market potential, greater openness, southeastern areas, non‐resource‐based economies, and higher development levels, the trade‐promoting effect of government digital attention is more pronounced, mainly driven by digital infrastructure density and governance efficiency. Our study advances digital governance and high‐quality service trade development, offering policy insights for differentiated digital strategies and refining the digital economy‐service trade framework.

Suggested Citation

  • Jikai Ma & Guijun Lin & Jinyong Zhan, 2026. "The impact of government digital attention on trade in services," Asian Economic Journal, East Asian Economic Association, vol. 40(2), pages 147-183, June.
  • Handle: RePEc:bla:asiaec:v:40:y:2026:i:2:p:147-183
    DOI: 10.1111/asej.70008
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/asej.70008
    Download Restriction: no

    File URL: https://libkey.io/10.1111/asej.70008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Feng, Suling & Zhang, Rong & Di, Danyang & Li, Guoxiang, 2024. "Does digital transformation promote global value chain upgrading? Evidence from Chinese manufacturing firms," Economic Modelling, Elsevier, vol. 139(C).
    2. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
    3. Qin Zhu & Xiangxiang Zhou, 2024. "Regional differences and dynamic evolution of digital trade: data from China," Applied Economics, Taylor & Francis Journals, vol. 56(31), pages 3722-3740, July.
    4. HeeSoo Chin & Durga Prasad Marasini & DonHee Lee, 2023. "Digital transformation trends in service industries," Service Business, Springer;Pan-Pacific Business Association, vol. 17(1), pages 11-36, March.
    5. Hilal Atasoy & Rajiv D. Banker & Paul A. Pavlou, 2021. "Information Technology Skills and Labor Market Outcomes for Workers," Information Systems Research, INFORMS, vol. 32(2), pages 437-461, June.
    6. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Investment in the European Union," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 959-972, November.
    7. Nathan Nunn & Nancy Qian, 2014. "US Food Aid and Civil Conflict," American Economic Review, American Economic Association, vol. 104(6), pages 1630-1666, June.
    8. Dario Musolino & Balazs Kotosz, 2024. "A new territorial attractiveness index at the international scale: design, application and patterns in Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(4), pages 1159-1187, April.
    9. Freund, Caroline L. & Weinhold, Diana, 2004. "The effect of the Internet on international trade," Journal of International Economics, Elsevier, vol. 62(1), pages 171-189, January.
    10. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    11. Keesing, Donald B & Sherk, Donald R, 1971. "Population Density in Patterns of Trade and Development," American Economic Review, American Economic Association, vol. 61(5), pages 956-961, December.
    12. Shuzhong Ma & Jiwen Guo & Hongsheng Zhang, 2019. "Policy Analysis and Development Evaluation of Digital Trade: An International Comparison," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 27(3), pages 49-75, May.
    13. Marco Ardolino & Mario Rapaccini & Nicola Saccani & Paolo Gaiardelli & Giovanni Crespi & Carlo Ruggeri, 2018. "The role of digital technologies for the service transformation of industrial companies," International Journal of Production Research, Taylor & Francis Journals, vol. 56(6), pages 2116-2132, March.
    14. Kaiser, Ulrich, 2002. "Measuring knowledge spillovers in manufacturing and services: an empirical assessment of alternative approaches," Research Policy, Elsevier, vol. 31(1), pages 125-144, January.
    15. Ma, Lin & Tang, Yang, 2024. "The distributional impacts of transportation networks in China," Journal of International Economics, Elsevier, vol. 148(C).
    16. Mehdi Asgarkhani, 2005. "Digital Government And Its Effectiveness In Public Management Reform," Public Management Review, Taylor & Francis Journals, vol. 7(3), pages 465-487, September.
    17. Xingqiang Du, 2015. "Does Confucianism Reduce Minority Shareholder Expropriation? Evidence from China," Journal of Business Ethics, Springer, vol. 132(4), pages 661-716, December.
    18. Stephen S. Golub, 2009. "Openness to Foreign Direct Investment in Services: An International Comparative Analysis," The World Economy, Wiley Blackwell, vol. 32(8), pages 1245-1268, August.
    19. Jingting Fan, 2019. "Internal Geography, Labor Mobility, and the Distributional Impacts of Trade," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(3), pages 252-288, July.
    20. Ma, Lin & Tang, Yang, 2020. "Geography, trade, and internal migration in China," Journal of Urban Economics, Elsevier, vol. 115(C).
    21. Caroline Freund & Diana Weinhold, 2002. "The Internet and International Trade in Services," American Economic Review, American Economic Association, vol. 92(2), pages 236-240, May.
    22. Wang, Lianghu & Shao, Jun, 2023. "Digital economy, entrepreneurship and energy efficiency," Energy, Elsevier, vol. 269(C).
    23. Chiara Bellucci & Stela Rubínová & Roberta Piermartini, 2025. "Better Together: How Digital Connectivity and Regulation Reduce Trade Costs," Review of International Economics, Wiley Blackwell, vol. 33(3), pages 796-814, August.
    24. Wang, Ziqi & Peng, Dan & Kong, Qunxi & Tan, Feifei, 2025. "Digital infrastructure and economic growth: Evidence from corporate investment efficiency," International Review of Economics & Finance, Elsevier, vol. 98(C).
    25. Lianghu Wang & Jun Shao, 2024. "Can Digitalization Improve the High-quality Development of Manufacturing? An Analysis Based on Chinese Provincial Panel Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2010-2036, March.
    26. Haijie Wang & Le Yang & Yanchao Feng, 2024. "How does digital economy affect the industry chain resilience in China?," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    27. Kong, Nan & Wang, Bingjie & Zhang, Yan & Zhou, Nianli, 2024. "How does digital technology affect export in services?," Journal of Asian Economics, Elsevier, vol. 95(C).
    28. Peng, Zihao & Huang, Yiqi & Liu, Luanhong & Xu, Wanli & Qian, Xihong, 2024. "How government digital attention alleviates enterprise financing constraints: An enterprise digitalization perspective," Finance Research Letters, Elsevier, vol. 67(PB).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wu, Haitao & Xue, Yan & Hao, Yu & Ren, Siyu, 2021. "How does internet development affect energy-saving and emission reduction? Evidence from China," Energy Economics, Elsevier, vol. 103(C).
    2. Shuzhong Ma & Zengxi Hu, 2023. "Internet penetration and multi‐product exporters: Firm‐level evidence from China," The World Economy, Wiley Blackwell, vol. 46(5), pages 1444-1470, May.
    3. Imbruno, Michele & Cariolle, Joël & de Melo, Jaime, 2025. "Digital connectivity and firm participation in foreign markets: An exporter-based bilateral analysis," Journal of Development Economics, Elsevier, vol. 177(C).
    4. Jin, Chenxin & Jin, Wei & Sheng, Bin & Sun, Zhen & Yan, Bing, 2025. "The dynamic trade and welfare effects of RCEP," Journal of International Money and Finance, Elsevier, vol. 154(C).
    5. Liu, Chen & Ma, Xiao, 2023. "Migration, tariffs, and China's export surge," Journal of International Economics, Elsevier, vol. 140(C).
    6. Qian, Zeyi & Suzuki, Kensuke & Zhang, Junfu, 2026. "Trade Costs, Entry Costs, and Regional Economic Growth in China," IZA Discussion Papers 18507, IZA Network @ LISER.
    7. Wenxiao Wang & Faqin Lin & Fengning Huan & Yanyun Li, 2024. "Labour market flexibility and domestic value‐added trade: Evidence from the hukou reform in China," The World Economy, Wiley Blackwell, vol. 47(6), pages 2400-2444, June.
    8. Wang, Rongji & Wan, Wei & Bai, Dongbei & Wang, Jue, 2025. "Digital transformation and corporate diversification: Evidence from China's A-share listed companies," Economic Modelling, Elsevier, vol. 150(C).
    9. Peng, Guohua & Zhao, Xiaoling, 2025. "Effects of export growth on the location choices of migrant workers: Evidence from China," China Economic Review, Elsevier, vol. 92(C).
    10. Patricia Kotnik & Eva Hagsten, 2018. "ICT use as a determinant of export activity in manufacturing and service firms: Multi-country evidence," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(1), pages 103-128.
    11. Zhongwei Xing, 2018. "The impacts of Information and Communications Technology (ICT) and E-commerce on bilateral trade flows," International Economics and Economic Policy, Springer, vol. 15(3), pages 565-586, July.
    12. Hildegunn K. Nordås & Dorothée Rouzet, 2017. "The Impact of Services Trade Restrictiveness on Trade Flows," The World Economy, Wiley Blackwell, vol. 40(6), pages 1155-1183, June.
    13. Amuedo-Dorantes, Catalina & Arenas-Arroyo, Esther & Sevilla, Almudena, 2018. "Immigration enforcement and economic resources of children with likely unauthorized parents," Journal of Public Economics, Elsevier, vol. 158(C), pages 63-78.
    14. Fan, Zhaobin & Bian, Ruimin & Anwar, Sajid, 2024. "Can digital transformation of services promote participation in manufacturing global value chains?," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1074-1092.
    15. Liu, Chen & Ma, Xiao, 2018. "China's Export Surge and the New Margins of Trade," MPRA Paper 103970, University Library of Munich, Germany, revised Oct 2020.
    16. Brandt, Loren & Lim, Kevin, 2024. "Opening up in the 21st century: A quantitative accounting of Chinese export growth," Journal of International Economics, Elsevier, vol. 150(C).
    17. Fernandes, Ana M. & Mattoo, Aaditya & Nguyen, Huy & Schiffbauer, Marc, 2019. "The internet and Chinese exports in the pre-ali baba era," Journal of Development Economics, Elsevier, vol. 138(C), pages 57-76.
    18. José Anson & Mauro Boffa, 2018. "Consumer Arbitrage in Cross-Border E-commerce," RSCAS Working Papers 2018/17, European University Institute.
    19. Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2023. "Intellectual property rights protection and trade: An empirical analysis," World Development, Elsevier, vol. 162(C).
    20. Heqi Zhang & Xiaonan Hou & Zhenzhen Rao, 2025. "Can fintech improve total factor energy efficiency? Evidence from China’s listed companies," Climatic Change, Springer, vol. 178(8), pages 1-20, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiaec:v:40:y:2026:i:2:p:147-183. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.