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Digital Economy, Industrial Structure, and Regional Trade Dependence: Mechanism Analysis Based on Chinese City Data

Author

Listed:
  • Qi Luo

    (The Faculty of Economics, Guangdong University of Finance & Economics, Guangzhou 510320, China)

  • Dantong Zhang

    (The Faculty of Economics, Guangdong University of Finance & Economics, Guangzhou 510320, China)

  • Hao Wang

    (School of Economics and Trade, Guangdong University of Foreign Studies, Guangzhou 510006, China
    School of Slavonic and East European Studies, University College London, London WC1H 0BW, UK)

Abstract

This paper aims to study the intricate interplay among the digital economy, industrial structure, and the degree of dependence on foreign trade. We utilize panel data from 284 prefecture-level cities in China spanning from 2011 to 2019 to comprehensively evaluate the level of digital economy development and investigate its influence on regional trade dependence. Additionally, we explore the role played by the industrial structure in the mechanism analysis. Our findings reveal that the digital economy significantly reduces regional trade dependence, while industrial structure upgrading notably enhances regional trade dependence. Moreover, the industrial structure upgrading weakens the influence of the digital economy on regional trade dependence, but such impact varies across regions as the impact of digital economy on foreign trade dependence is more pronounced in inland areas. This paper also facilitates the exploration of how the digital economy empowers domestic economic growth.

Suggested Citation

  • Qi Luo & Dantong Zhang & Hao Wang, 2023. "Digital Economy, Industrial Structure, and Regional Trade Dependence: Mechanism Analysis Based on Chinese City Data," Sustainability, MDPI, vol. 15(17), pages 1-12, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:17:p:13055-:d:1228672
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    References listed on IDEAS

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    1. Nathan Nunn & Nancy Qian, 2014. "US Food Aid and Civil Conflict," American Economic Review, American Economic Association, vol. 104(6), pages 1630-1666, June.
    2. Keller, Wolfgang, 2002. "Trade and the Transmission of Technology," Journal of Economic Growth, Springer, vol. 7(1), pages 5-24, March.
    3. Setsuya Sato & John Hawkins, 2001. "Electronic finance: an overview of the issues," BIS Papers chapters, in: Bank for International Settlements (ed.), Electronic finance: a new perspective and challenges, volume 7, pages 1-12, Bank for International Settlements.
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    Cited by:

    1. Han, Yonghui & Cheng, Hao & Wang, Hao, 2025. "How bilateral investment treaties affect cross-border mergers and acquisitions: Novel evidence from China's internationalization," Emerging Markets Review, Elsevier, vol. 65(C).
    2. Chao Wang & Wenyu Zhang & Bing Li, 2023. "Analysis of Country Economic Growth Based on Industries Chain Position," Sustainability, MDPI, vol. 15(21), pages 1-15, November.
    3. Lihong Cao & Nengjie Pan & Yaoyi Lu & Wenjie Su, 2024. "Digital Innovation and Urban Resilience: Lessons from the Yangtze River Delta Region," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 19775-19794, December.

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