Impact of Digital Economy on China's Services Trade Competitiveness

Abstract

With the global spread of the new coronavirus epidemic, international trade has been greatly hindered. However, the rapid development of the digital economy has improved the efficiency of financial services and government governance, providing new solutions and perspectives for countries to develop service trade. Therefore, this paper uses the macro panel data of 30 provinces in China from 2013 to 2020 and the system GMM model to empirically test the impact of digital economy on the competitiveness of service trade from the perspective of financial development and government governance. This paper finds that the development of the digital economy can promote the progress of financial industry and strengthen the level of government governance so as to enhance the competitiveness of service trade; that is, financial development and government governance have mediating effects. Based on the above results, the author proposes to deepen the digital transformation of government governance, deepen the digital reform of financial services and promote the process of digital legal supervision.