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Digital‐Real Integration and Trade Network Centrality: Evidence From China

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  • Xiaosong Wang
  • Yuding Zhou
  • Siyuan Tian
  • Le Li

Abstract

Against the backdrop of digitalization reshaping the international trade landscape, the deep integration of digital technology with the real economy is transforming the global value chain and has become a crucial pathway for enhancing national competitiveness. This study investigates how digital‐real integration influences China's trade network centrality. Employing a trade network model, we first theoretically analyze how digital‐real integration affects firms' positions within the trade network. Then, based on customs data from 2011 to 2022, we measure China's trade network centrality and empirically test the impact of digital‐real integration. The results indicate that digital‐real integration significantly improves China's trade network centrality, with various robustness tests supporting the reliability of this conclusion. Heterogeneity analyses reveal that the effect of digital‐real integration is more pronounced in high contract intensity and technology‐intensive industries. Additionally, mechanism analysis shows that digital‐real integration increases production flexibility and supply–demand matching efficiency, thereby enhancing industrial competitiveness and elevating China's position in the global trade network. Extended analyses highlight the moderating roles of digital infrastructure and trade facilitation, showing that enhancement of digital infrastructure and trade facilitation amplifies these positive effects.

Suggested Citation

  • Xiaosong Wang & Yuding Zhou & Siyuan Tian & Le Li, 2026. "Digital‐Real Integration and Trade Network Centrality: Evidence From China," The World Economy, Wiley Blackwell, vol. 49(6), pages 1124-1142, June.
    • Handle: RePEc:bla:worlde:v:49:y:2026:i:6:p:1124-1142
    DOI: 10.1111/twec.70070
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