The Impact of the Digital Economy on the Export Competitiveness of Green Products in China

This paper utilizes Chinese firms' import and export data and applies a difference-in-differences (DID) method to study the impact of the digital economy on the export competitiveness of green products, while exploring its mechanisms and heterogeneity. The findings indicate that firms' digital transformation significantly enhances the export competitiveness of green products, and this result remains robust under various control variables. The mechanism of influence is primarily reflected in improving production efficiency, reducing production costs, and enhancing firms' Environmental, Social, and Governance (ESG) performance, ultimately helping firms improve their competitiveness in the international market. Heterogeneity analysis reveals that the enhancement effect on export competitiveness is more pronounced for local and innovative firms compared to central enterprises. Additionally, firms exporting to RCEP member countries benefit more from digital transformation due to the characteristics of market demand. Importing firms also see significant competitiveness improvements by increasing supply chain efficiency and adopting advanced technologies. This study has important practical implications for deepening the understanding of the economic effects of the digital economy, promoting green transformation among Chinese firms, and addressing international green trade barriers.