Broadband infrastructure and export growth

With the digital transformation of the economy and society, high-speed Internet is becoming an important supporting infrastructure for international trade activities. This study treats the pilot policy of the Broadband China strategy as a quasi-natural experiment and investigates the ways in which broadband infrastructure development affects export trade in Chinese cities. Empirical results show that export trade in the pilot cities increases by 6.82%-18.8% on average as a result of the Broadband China policy intervention. Our study shows that this policy can effectively promote the use of Internet facilities, and broadband infrastructure can significantly promote the growth of a city's export trade. Broadband infrastructure influences export trade through the direct channel of improving information efficiency, which in turn lowers logistics costs, promotes trade efficiency, and reduces barriers to trade. There is no significant regional heterogeneity and urban characteristics heterogeneity in the export trade effect. Although broadband infrastructure can affect exports through the indirect channels of industrial structure and technological innovation, the direct effect accounts for much of the total effect.

Automated summary

With the development of broadband infrastructure, the export trade in Chinese cities has been significantly promoted as a result of improved information efficiency and reduced logistics costs. The direct effect plays a major role in influencing export trade, while the indirect effects through industrial structure and technological innovation are relatively minor.