Digital Transformation Of Traditional Industries

With the development of the Internet and the concept of digital products and digital trade proposed,digitization has become an important issue in world,especially the research on digital trade.The Internet has been well developed in China,however the current development of digital trade does not have an absolute advantage.Then,in the background of the new economic development,what kind of influence will be brought to Chinese industrial structure by the digital trade,and what kind of impact will be made on traditional industries by the development of digital,which need to be further explored.Based on the present situation of the development of digital trade,on the one hand,this paper analyzes the mechanism of the effect of digitization on the industrial structure from the theoretical level.Technological innovation provides a new path for the development of digital products,changes the original production function and business model,and cuts down the marginal cost to zero which help expand the market to create a great competitive advantage.Although it has a certain threaten on traditional industries,it has a positive effect on industrial transformation.On the other hand,this paper constructs the VAR model based on UNCTAD digital trade data and the level of industrial structure coefficient,which aims to obtain the correlative between verification of digital trade and industry structure.The empirical results show that the digital trade has a positive effect on industrial upgrading,and predicted to be positive for long-term.As the Amazon Kindle for an example,this paper analyses the impact of the digital industry on traditional industries,based on Kindle's business model,market advantages and future trends.Therefore,this paper puts forward some suggestions for the transformation and development of traditional industries.In addition,some suggestions for the development of China's digital trade in the future are also presented,China should grasp the development direction of the digital trade rules,and actively explore the future development path of digital trade.