Trade Openness, Digital Economy and Spatial Spillover ---An empirical study based on China's provincial panel data

Abstract

Based on panel data of 31 provinces in China from year 2010 to 2020, this paper constructs a provincial digital economy evaluation index system to measure the digital economy development. Under the framework of static and dynamic spatial panel models, this paper empirically studies the spatial effects of China's provincial trade openness on the development of digital economy. The results show that China's provincial trade openness has obvious positive and spatial effects on the development of digital economy, and the local trade openness has a sustainable driving effect on its own digital development, but not sustainable for the neighboring region. Moreover, the influence of the eastern regional trade openness on the digital economy shows a spatial diffusion pattern in the short and long term, while that of the central and western regions shows a spatial siphon effect pattern.