An Empirical Study of the Determinants of Digital Trade Competitiveness in APEC Economies: Based on Porter’s Diamond Model

Abstract

Purpose – This study aims to analyze the impact of each factor on the international competitiveness of digital trade by selecting nine major APEC digital trading countries based on Porter’s “Diamond Model”. Design/Methodology/Approach – Based on Porter’s “Diamond Model”, this study established indicators influencing the national competitiveness of nine APEC member countries, and panel analysis was conducted by selecting eight indicators, including digital trade exports (DTE), production factors, demand conditions, corporate organization, strategy and competition, related and supporting industry performance, and government and opportunities, as explanatory variables. Findings – According to the panel regression analysis results, among the explanatory variables, both the number of fixed infrastructure broadband subscribers (FBS) and services trade exports (CSE) had a significant positive effect on digital trade competitiveness. Research Implications – The development of digital trade is closely related to the support of various infrastructure facilities, and information and communication technology-based digital trade has to offer technical assurances and methods for data input and output for industrial development. Most traditional service industries in APEC member countries still account for a large proportion. The export growth of service trade heavily relies on the overall improvement of the competitiveness of the service trade. Therefore, it is necessary to seize the development opportunities of the service trade, expand the export market share of traditional service industries, and actively develop emerging modern service industries to promote the harmonious development of the overall service trade industry and enhance the international competitiveness of digital trade.