An Insight Into the Nexus of Digital Economy, Innovation Quality, and Trade Development: Evidence From China

Abstract

The strategic choice of how to gain a new competitive advantage internationally again under the pattern of domestic and international mutual promotion and development is particularly important. Based on the empirical research method, this paper uses both panel data model and BVAR model to analyze the tripartite interaction between digital economy, innovation quality and trade development. A study with innovation quality, digital economy and trade development real data, collected from the China Statistical Yearbook, National Bureau of Statistics, is conducted to illustrate the proposed interaction mechanism. The results show that a good market environment has a certain promotion effect on improvement of digital economy and innovation quality, and there is a certain positive interaction between digital economy and innovation quality.