How Does Digital Trade Affect Corporate Digital Technology Innovation?: Evidence From China

Yongchao Song and Yuanyuan Zhao
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Yongchao Song: Zhengzhou University of Light Industry, China
Yuanyuan Zhao: Zhengzhou University of Light Industry, China

International Journal of Decision Support System Technology (IJDSST), 2025, vol. 17, issue 1, 1-27

Abstract: This paper examines how the digital technology innovations of corporations are affected by digital trade. We employ cross-border e-commerce comprehensive pilot zones (CBECPZs) as a proxy variable for digital trade. A multi-period difference-in-differences (DID) model is set up that relates corporations' digital technology innovations to the digital trade variable. The results show that digital trade enhances corporations' innovation in digital technology. Enhancing technology absorptive capacity, alleviating financing constraints and facilitating talent agglomeration are the main channels through which this impact can be realized. This positive effect is particularly significant for nonstate-owned corporations, low-pollution corporations, corporations with lower levels of digital transformation, and those located in regions with advanced digital infrastructure, technology-intensive industries, and highly informatization areas. Ultimately, digital trade can improve the high-quality development of corporations by fostering digital technology innovation.

Date: 2025
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