An Empirical Study of the Impact of the Digital Silk Road on Foreign Trade between China and Countries along the Route - A Quasi-Natural Experiment Based on Silk Road E-Commerce International Cooperation

Abstract

The Digital Silk Road, as the digital extension of the Belt and Road Initiative, aims to enhance international trade and infrastructure development. This study is based on data from 190 countries from 2002 to 2022, using the PSM-DID model and the quasi-natural experimental environment of Silk Road e-commerce international cooperation, to conduct an in-depth study of the impact of the Digital Silk Road (DSR) initiative on trade between China and the countries along the route (countries that have signed the DSR initiative with China). This study draws the following conclusions. First, the DSR initiative has a positive effect on trade between China and the countries along the route, with Chinas import effect on these countries being more significant than the export effect. Second, digital infrastructure has a positive impact on the effectiveness of the DSR initiative. Third, the DSR initiative is more effective when the countries along the route are Asian countries or high-income countries.