Uncovering the Mechanism of Elevating High-Tech Export Competitiveness in China’s Sustainable Economic Development: Force of Digital Economy

Abstract

The accelerating growth of the digital economy is fundamentally transforming international trade patterns and increasingly contributing to sustainable economic progress. Despite this, there is still limited research on how it influences the competitiveness of high-tech exports. Addressing this research gap, the present study investigates the mechanisms through which the digital economy strengthens the competitiveness of high-tech exports—an essential engine for sustainable growth. China, recognized as a leader in digital innovation, serves as the focal point of this analysis. Drawing on panel data spanning from 2011 to 2021 across 30 provincial-level regions (including municipalities and autonomous areas), we develop a multidimensional index that captures the extent of industrial digitalization, digital industrialization, and the digital development environment. Our econometric analysis uncovers direct and indirect mechanisms through which digitalization reduces trade costs, accelerates innovation-led business models, and lowers market entry barriers, thereby promoting sustainable industrial upgrading. Moreover, we reveal that digital integration contributes to narrowing regional disparities, fostering inclusive and resilient economic growth. A double-threshold effect is identified, where the initial high costs of digital adoption yield substantial long-term sustainability benefits. These findings offer critical insights for policymakers seeking to align high-tech industrial strategies with sustainable development goals, ensuring an equitable and innovation-driven digital economy.