This paper constructs indicators for manufacturing upgrading and digital trade development using provincial-level panel data from China. It empirically analyses the impact and underlying mechanisms of digital trade on manufacturing upgrading. Findings reveal that the level of digital trade development exerts a significant and robust positive influence on manufacturing upgrading. Mechanism analysis indicates that technological innovation plays a mediating role in digital trade's promotion of manufacturing upgrading, albeit with short-term conversion lags. Based on these results, this paper proposes policy recommendations: enhancing digital trade infrastructure, improving technological innovation conversion efficiency, and strengthening industrial collaboration and talent cultivation. These aim to elucidate pathways for digital trade to foster high-quality manufacturing development, providing theoretical foundations and empirical references for policymakers and industry practitioners.
Yujia Zheng (Sat,) studied this question.