Lu Wan, Yanqi Fang, Nannan Ban, Guo Cheng and Guohua Huang
This paper aims to explore the relationship between digital transformation, international competition and productivity progress by examining the dual margins of export, thereby…
Abstract
Purpose
This paper aims to explore the relationship between digital transformation, international competition and productivity progress by examining the dual margins of export, thereby identifying the digital development pathway for key industrial chains within the context of regional medical and health cooperation.
Design/methodology/approach
By constructing models incorporating both the extensive margin and intensive margin, this paper delves into the reasons underlying changes in product trade value and variety within international market competition. Utilizing export data for medical products from China to Belt and Road Initiative partner countries spanning from 2007 to 2020, an industry–destination–time panel benchmark model is established to assess the impact of digital transformation on product expansion and international competition.
Findings
The findings reveal the following insights. First, digital transformation positively impacts the intensive margin of medical products, whereas it does not exert a positive influence on the extensive margin. Second, the impact mechanism test indicates that digital transformation fosters the intensive export margin by enhancing the technical efficiency of exports but exhibits an inverted U-shaped effect on technological progress. Third, digital transformation demonstrates a notable non-linear characteristic, with a substantial increase in the lifting effect once a certain threshold is surpassed.
Originality/value
While previous research has extensively explored the effects of digital transformation on export trade, this study uniquely integrates the concepts of the intensive and extensive margins of export, thereby enriching the research insights derived from existing literature. It focuses on the nonlinear effects and threshold dynamics of digital transformation, particularly in relation to total factor productivity. Additionally, the paper makes a contribution to the understanding of the Health Silk Road by incorporating the health index.