HOW DIGITAL TRADE POLICIES INFLUENCE THE DEVELOPMENT OF URBAN DIGITAL ECONOMIES

Digital trade plays a crucial role in global economic development, and the impact of related policies on urban digital economies has become a prominent research area. This study conducts qualitative analysis of digital trade policy documents in China, identifying core mechanisms driving urban digital economy growth. Using panel data from 280 Chinese cities (2010-2021), we apply the Difference-in-Differences method, treating Cross-border E-commerce comprehensive pilot areas as a quasi-natural experiment to evaluate digital trade policy impacts on urban digital economic development. Findings reveal that pilot areas significantly boost urban digital economy development. Heterogeneity analysis shows this effect is particularly pronounced in eastern coastal regions, megacities, and the Yangtze River Delta. Mechanism analysis suggests digital trade policies foster urban digital economic development by advancing digital infrastructure, promoting service industry agglomeration, and improving business environments.