Does the digital economy empower the green development of foreign trade?

Abstract

The digital economy has become a new driving force for China's economic development in recent years, and it may contribute to solving the corresponding problems of resource and environmental pressure. Therefore, this study strives to explore whether the digital economy contributes to the green development of foreign trade. First, this study measures the digital economy development in China. Second, this study presents a list of environmental and polluting products and examines the impact of digital economy development on exports of representative products based on an extended gravity model. The main findings are as follows. First, the digital economy significantly promotes the green development of foreign trade. Second, the signing of Free Trade Agreements (FTAs) and the income level of importing countries and regions strengthen the role of the digital economy in promoting the green development of foreign trade. Third, the digital economy promotes the green development of foreign trade through green technological innovation. Finally, some policy implications are proposed based on the findings of this study.

Keywords: Digital economy; Foreign trade; Gravity model; Green development; Green technological innovation.