Digital Economy Empowers Service Trade ManagementInnovation in China: Practices and Challenges in Digital Transformation

Abstract

As an emerging paradigm of economic development, digital economy has already become a pivotal force to drive the evolution for modern trade in services. Utilizing panel data from China spanning the years 2012 to 2022, the research organized a complex evaluation system for digital economy. It employs 2 empirical strategies: first, benchmark regression assess direct effect between digital economy and service trade in China; second, a panel moderation model investigates moderating effect of the industrial agglomeration between digital economy and services trade. Main findings in the study indicate that: (1) Digital economy made significant direct effect on the service trade. (2) Industrial agglomeration made a positive moderating effect as digital economy influencing service trade in China. Based on the conclusions, this study proposes several recommendations, emphasizing that governments enhance policy guidance and promote integrated digital economy and service trade. Research findings not only furnish empirical support for advancing digital transformation of service trade in China but also contribute theoretical and practical insights for digitalization and service trade reforms in developing countries and regions in the world.