Digital trade and common prosperity: evidence from China Province

This study investigates the impact mechanism of digital trade on common prosperity using provincial panel data from 30 Chinese provinces between 2011 and 2023, employing empirical analysis and case study approaches. The findings reveal that digital trade significantly promotes common prosperity through enhancing entrepreneurial activities, reducing unemployment, and stimulating innovation and R&D investment. Industrial structure optimization and logistics upgrading moderate this influence, with more pronounced effects observed in eastern and central regions. Key mechanisms include: (1) Digital trade facilitates entrepreneurial opportunities and job creation, thereby narrowing income disparities; (2) Industrial upgrading and efficient logistics amplify the spillover effects of digital trade. Regional heterogeneity underscores the necessity for tailored policy formulation. The research outcomes highlight the transformative role of digital trade in achieving inclusive growth, providing substantial policy implications for leveraging digital commerce to advance common prosperity in China.