An Empirical Study on the Impact of Digital Economy Innovation Development on the Export Quality of Chinese Electromechanical Products

Abstract

This study measures the export quality of electromechanical products using data from China’s electromechanical products from 2011 to 2021, empirically investigates the effects of the level of innovation and the growth of the digital economy (DE) on the export quality of electromechanical products, and assesses potential industry heterogeneity. With an erratic upward trend, it is observed that the export quality of Chinese electromechanical products has suffered twice. China’s DE has demonstrated a rising trend in innovation and growth year over year. The creation and growth of the DE throughout the study period had an inverted “U” dynamic effect on the export quality of electromechanical goods, which was initially boosted and later decreased. It is possible to raise the export quality of Chinese mechanical and electrical products by expanding firm size and raising human resource levels. The export quality of Chinese mechanical and electrical products is not much impacted by innovation, R&D capacity, or degree of openness. The inverted “U”-shaped dynamic impacts of the DE’s creation and development on the export quality of electromechanical products are still present after endogeneity analysis and robustness testing, which initially promote and then suppress the rate. The inverted “U”-shaped relationship between DE innovation development and the quality of electromechanical product exports of the manufacture of computers and other electronic equipment, as well as general equipment manufacturing, is still significant, according to the results of sub-industry tests. The study presented in this article offers policy recommendations for facilitating the innovative growth of the DE and raising the standard of electromechanical exports from China.