Trade Efficiency of Information and Communication Technology Products Between China and RCEP Member Countries

Xiaomei Wang, Yixin Zhu and Tonghe Zhang

Australian Economic Papers, 2025, vol. 64, issue 4, 473-485

Abstract: Using the stochastic frontier gravity model and information and communication technology (ICT) product trade data from 2007 to 2021, this study measures and compares the efficiency of ICT product trade between China and Regional Comprehensive Economic Partnership (RCEP) member countries. The results of this study indicate that the trade flow of ICT products is positively correlated with the level of economic development and negatively correlated with geographical distance. Government efficiency, trade and transport‐related infrastructure quality, higher education enrollment rate, and the number of mobile phone users have a positive effect on the trade efficiency of ICT products. Compared to the United States and the European Union, China has the lowest export efficiency and the highest import efficiency of ICT products to RCEP member countries. The trade efficiency estimates also reveal that China's efficient ICT product trading partners include Australia, Japan, New Zealand, Singapore, and South Korea, while inefficient ICT product trading partners include Brunei, Cambodia, Laos, and Myanmar. Moreover, there are significant differences in trade efficiency among different categories of ICT products. Therefore, China should focus on minimizing the impact of non‐efficiency factors in trade, implement differentiated cooperation strategies with RCEP member countries, and promote the diversification of ICT product trade.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bla:ausecp:v:64:y:2025:i:4:p:473-485

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