The Impact of Digital Trade Development on High-Quality Economic Growth

Abstract

This paper conducts panel regression analysis using data from 65 countries between 2000 and 2019 to explore the connection between digital trade development and high-quality economic growth. The results indicate that digital trade development can significantly contribute to high-quality economic growth. Moreover, the robustness of the results is further confirmed through a series of robustness checks and 2SLS regression with instrumental variables. Secondly, developing economies are more affected by the level of digital trade development than developed economies, based on heterogeneity analysis. Finally, this paper examines the effect of digital infrastructure and ICT (information and communication technology) trade (including ICT products trade and ICT services trade) on high-quality economic growth. The results indicate that developing economies have greater potential to promote high-quality economic growth through improving digital infrastructure compared to developed ones. Furthermore, ICT product trade significantly enhances high-quality economic growth across all economies, while the effect of ICT service trade is not significant.