How Does the Digital Economy Affect the Domestic Value-Added Rate of Chinese Exports?

Yibing Ding,Sitong Tang,Hongyuan Zhang

doi:10.4018/jgim.20210901.oa5

Yibing Ding, Sitong Tang + Show 1 more

Open Access

https://doi.org/10.4018/jgim.20210901.oa5

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Abstract

The digital economy continuously injects new momentum into the traditional economy and has become an important driving force for national economic development. Against this backdrop and using input-output data from the WIOD from 2002 to 2014, this paper empirically analyzes the impact of the development of the digital economy on the domestic value-added rate of Chinese manufacturing industry exports and the mechanism underlying this relationship. The results show that (1) digital economic input significantly promotes growth in the domestic value-added rate of manufacturing industry exports, (2) digital economic input mainly increases the domestic value-added rate of intermediate-product exports, (3) digital input has a significant positive impact on the capital-intensive and knowledge-intensive manufacturing industries, and (4) technological progress and cost reduction are important mechanisms through which the digital economy promotes the domestic value-added rate of exports.

Highlights

With a new generation of network information technology revolutions spreading around the world, the digital economy is booming
The estimation results show that the digital economy has significantly increased the domestic value-added rate of intermediate-product exports and has improved the structure of the domestic value-added of exports, and the results are significant at the 1% level, which provides evidence that digital inputs could facilitate industrial upgrading and improve China’s trade structure
Because the digital economy is booming and continues to inject new vitality into the traditional economy, this paper first elaborates the mechanisms by which the development of the digital economy effects the domestic value-added rate of exports from the perspective of technological progress and cost reductions

Summary

INTRODUCTION

With a new generation of network information technology revolutions spreading around the world, the digital economy is booming. In the context of the current division of production in the global value chain and the vigorous development of the digital economy, this paper attempts to explore whether the digital economy can effectively improve China’s domestic value-added rate of exports to obtain more real trade gains. This paper explores the channels through which the digital economy affects the value-added of manufacturing exports from two aspects, technology progress effects and cost reduction effects, and conducts relevant tests. Hypothesis Two: Technological progress and cost reductions are two important channels through which the development of the digital economy promotes growth in the domestic value-added of manufacturing exports. Econometric Model To effectively test the impact of the digital economy on the domestic value-added rate of manufacturing exports, the benchmark measurement model in this paper is set as follows: DVARit = α + β1digitalit + γXit + δi + δt + εit (1). Industry Classification (GB/T4754-2002), industry matching was performed with ISIC Rev. 4.0, and 17 combined manufacturing industries were obtained

Benchmark Regression Results

CONCLUSION AND RECOMMENDATIONS

Data source