Research on the International Competitiveness and Influencing Factors of Digital Service Trade: Evidence from Zhejiang Province, China

Abstract

In today’s ever-changing international situation, the role of digitalization and digital technologies in accelerating economic recovery is becoming increasingly evident. Digital service trade has gradually become a key driving force for international trade and global economic recovery and growth. With its favorable policy environment and infrastructure, Zhejiang Province has witnessed rapid development in digital services trade. Based on data of China and Zhejiang Province from 2013 to 2022, this paper first analyzes the current situation of digital services trade in Zhejiang Province and its international competitiveness. The results show that the overall scale of digital services trade has expanded over the past decade, but its structure is relatively unreasonable. Moreover, its competitiveness is relatively strong and has an overall upward trend, but has weakened in recent years due to the decrease in export and the increase in import. This paper further conducts an empirical study on the influencing factors of digital services trade competitiveness in Zhejiang Province based on Porter's theory of national competitive advantage. The analysis shows that the export of services trade is most closely related to the digital services trade, while the foreign investment in actual use has a relatively weak correlation with the digital service trade due to its unclear driving effect on the export. R&D level, fixed asset investment, disposable income per capita, export of services trade, and the openness of digital services trade have a positive impact on its competitiveness, while the foreign investment in actual use has a negative effect. Finally, based on the research results, this paper puts forward corresponding recommendations.