The Digital Services Trade’s Impact on the Green Development of the Industrial Sector in the People’s Republic of China

Ailian Qiu (), Jiatian Sun () and John D. McCollough
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Ailian Qiu: School of Economics, Shenyang University of Technology, Liaoning, People’s Republic of China
Jiatian Sun: Bank of Jinzhou Co., Ltd., Shenyang Branch, People’s Republic of China
John D. McCollough: College of Business, School of Accounting, Finance, and Economics, Lamar University, Beaumont, Texas, United States

Asian Development Review (ADR), 2025, vol. 42, issue 02, 279-304

Abstract: Countries seek to maximize economic growth while minimizing environmental damage. Protecting the environment is a natural constraint on economic growth. This paper shows that trade in services helps industries to not only grow but to also become “greener.†Trade in services, therefore, has a dual benefit. It will be shown, based on a review of panel data at the industrial level, that services trade has had a positive impact on green industrial development in the People’s Republic of China. The impact of services trade on industrial green development is examined through the lens of green total factor productivity. Services trade can significantly improve industrial green total factor productivity, which promotes industrial green development. This is more pronounced with trade in the science and technology service fields. Therefore, it is in the best interest of an economy to embrace trade in services and, particularly, to concentrate on trade in research and development.

Keywords: green industrial development; green total factor productivity; intermediary effect; services trade (search for similar items in EconPapers)
JEL-codes: Q01 Q55 Q56 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S0116110525500131

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