The Impact of Deepening Digital Trade Rules on the Upgrading of Trade Structure in Developing Countries

erd

Education Reform and Development

2652-53642652-5372

Bio-Byword Scientific Publishing Pty. Ltd.

10.26689/erd.v8i7.15919

Article

The Impact of Deepening Digital Trade Rules on the Upgrading of Trade Structure in Developing Countrieshttps://artdesignp.com/journal/erd/8/7/10.26689/erd.v8i7.15919XuHua,LiuHongyuan,LiaoZicheng

2026

2026-08-13

The digital technological revolution has reshaped global trade rules, with all countries racing to formulate digital trade regulations. Existing research mostly adopts the perspective of the world or developed economies, while paying insufficient attention to the impacts on developing countries. Based on the perspective of developing countries, this paper studies how the deepening of digital trade rules affects the upgrading of their trade structures. By sorting out the course of developing countries’ participation in global digital service trade governance, this paper constructs an indicator to measure the depth of digital trade rules and conducts empirical analysis based on a cross-border dynamic panel data model. The study finds that the deepening of digital trade rules significantly boosts the development of digital service trade in developing countries, thereby driving the upgrading of their trade structures, and this effect is more pronounced in high-income developing countries. Mechanism analysis shows that the deepening of rules realizes structural upgrading mainly through two paths: cutting trade costs and elevating regulatory standards. Accordingly, suggestions are put forward for developing countries: take an active part in global governance, prioritize the formulation of cross-border data flow rules, strengthen the construction of domestic digital infrastructure and laws related to data classification, and seize opportunities to realize the upgrading of trade structures.

Marel EVD, Ferracane MF, 2021, Do Data Policy Restrictions Inhibit Trade in Services? Review of World Economics, 157: 1–50.

Li M, 2017, New Trends of Digital Trade Rules and Negotiations in Mega Free Trade Agreements. Journal of Shanghai Normal University (Philosophy & Social Sciences Edition), 46(1): 100–107.

Sun Y, Yu M, Shang Y, 2022, The Impact of Digital Trade Rules in Regional Trade Agreements on Service Exports—Evidence from APEC Members. Nankai Economic Studies, 2022(3): 142–160.

Wu J, Luo Z, Wood J, 2023, How Do Digital Trade Rules Affect Global Value Chain Trade in Services?—Analysis of Preferential Trade Agreements. The World Economy, 46(10): 3026–3047.

Lan Q, Dou K, 2019, The Connotation Evolution, Development Trend and China’s Strategy of Digital Trade in the US, Europe and Japan. International Trade, 2019(6): 48–54.

Zhou N, Wang Q, 2019, Research on the Penetration Level of American-Style Digital Trade Rules into Asian Economies’ RTAs. Asia-Pacific Economic Review, 2019(4): 30–37.

Lin X, Bao X, 2018, How Do Regional Service Trade Agreements Affect Service Trade Flows?—A Research Perspective Based on Value-Added Trade. Economic Research Journal, 53(1): 169–182.

Huang S, Bi J, Guo X, 2024, Research on the Impact of Cross-Border Data Flow Restrictions on Digital Service Trade Between China and RCEP Countries. Investment Research, 43(1): 4–25.

Wang L, 2024, Analysis of the Impact of Digital Trade Barriers on the Sophistication of Service Exports. North China University of Technology (Doctoral Dissertation).

Zhou N, 2012, Can Regional Trade Arrangements Effectively Boost Service Exports of Developing Economies. The World Economy, 35(11): 88–111.

Shen Y, Peng Y, Gao J, et al., 2021, New Driving Force for Digital Trade Development: Booming RTA Digital Trade Rules—Global Digital Trade Promotion Index Analysis Report (2020). World Economic Research, 2021(1): 3–16.

Hofmann C, Osnago A, Ruta M, 2017, Horizontal Depth: A New Database on the Content of Preferential Trade Agreements. Policy Research Working Paper Series.

Elsig M, Klotz S, 2019, Behind-the-Border Measures and the New Generation of Trade Agreements. Behind-the-Border Policies.

Mao Y, Fang Y, 2023, Research on the Impact of the Evolution of Global Digital Trade Rules on the Added Value of ICT Product Exports. International Trade, 2023(7): 84–96.

Sundaram A, 2018, The Great Convergence: Information Technology and the New Globalization by Richard Baldwin. Nephron Clinical Practice, 12(2): 297–300.