Does the service trade network impact on technological complexity of exports?——New perspective based on social network approach

Abstract

ABSTRACT In the context of the digital economy, digital service trade has gradually become a new driving force for the high-quality development of foreign trade in various countries. Based on the bilateral data of digital service trade between 56 countries from 2005 to 2021, this paper constructs the global digital service trade network through social network analysis method. Also, this study examines the impact of the network characteristics on its export technology complexity. According to our research findings, first, in terms of the overall characteristics, the number of participating countries in digital service trade is increasing, and the density is overall low but showing an upward trend. Second, in terms of individual characteristics, the ranking is relatively stable, developed countries such as Europe and the United States with higher centrality, connectedness and heterogeneity are the dominant players in the digital service trade. But the indicators of each characteristic are decreasing over time, verifying the fact that the global digital service trade has become more open and inclusive. Third, we examined that centrality, connectedness, and heterogeneity all contribute significantly to export technological complexity. Technological innovation is the main path of action. The results still hold after performing a series of robustness tests.