The impact of digital service level on the trade openness in Chinese cities where China-Europe railway express is operating

Abstract

The new digital technology has constantly strengthened the global economy and trade system. Based on the new generation of digital technology, it is capable of being applied to extensive fields through the digital service industry. In this paper, digital service level of seventeen provinces that have opened China-Europe Railway Express from 2011 to 2020 are assessed using principal component analysis (PCA). The empirical multiple regression discoveries that the enhancement in digital service level could increase export volume. In addition, both postal and telecommunications investment in towns and cities (PAT) and the number of patent applications in high-tech industries (PAH) interact with the level of digital service to facilitate trade development. Moreover, China’s “National Informatization Development Strategy Outline” policy promulgated in 2016 positively promotes digital service levels, which in turn promotes export trade. This paper also gives suggestions to enhance trade openness of cities around CR railway in the digital field.