Analyzing Factors Affecting Digital Trade between Korea and China: An Empirical Study

Digital trade is a new type of trade, and its scale is increasing significantly, but it is a research field that requires internationally unified rule making. Therefore, in this paper, the factors affecting digital trade between Korea and China. Digital trade is an increasingly important area of commerce, and international cooperation is needed to establish unified regulations. To better understand the factors influencing digital trade between Korea and China, this study analyzed several independent variables, including export tariffs, intellectual property usage fees, exchange rates, R&D cost ratio, service trade export ratio, and ICT service export ratio, and their impact on digital trade exports. The empirical analysis revealed that export factors related to export duties, intellectual property usage fees, and services were significant for digital trade exports in Korea. Specifically, export tariffs had a negative impact on digital exports, while intellectual property royalties and service trade exports had a positive impact on digital exports. In the case of China, the exchange rate, R&D cost ratio, and intellectual property usage fee were found to have a significant effect on digital trade exports. The implication of these findings is that China may need to ease regulations and reduce strict controls on digital trade, while also developing a robust intellectual property protection system to support this growing sector. Overall, this study highlights the need for international cooperation and collaboration to establish rules and regulations that support the growth and development of digital trade in a global economy.