An Empirical Study On The Impact Of Business Environment On China’s Digital Trade

With the rapid development of the global digital economy,competition in digital trade among countries has intensified.The optimization of the digital trade business environment has become a common concern for countries,and more and more countries hope to promote the development of digital trade by improving the business environment.Meanwhile,due to the digitization of production and life,digital trade has put forward higher requirements for the construction of a business environment.In the process of building a good business environment,creating a business environment suitable for the development of digital trade can provide a foundation for digital trade.This article first analyzes the current situation of China’s business environment and digital trade,and then analyzes the theoretical mechanism of the impact of business environment on digital trade based on literature research.Secondly,a business environment indicator system is constructed,and factor analysis and entropy method are used to analyze China’s business environment from 2010 to 2021.The business environment scores of 31 provinces in China are calculated and ranked,Finally,an econometric model was used to examine the impact of the total indicators of the business environment,two common factors of the business environment,and six primary indicators of the business environment on digital trade.The following conclusions were drawn:Firstly,overall,the business environment in China has been improving in recent years.From a regional perspective,the business environment in the eastern and central regions has improved from 2020 to 2021,while the business environment in the western region has retreated,and the business environment in the western region is relatively backward.China’s overall digital trade is constantly improving,but there are still insufficient technologies in the digital industry and weak competitiveness in digital service trade.Secondly,from the comprehensive score ranking of the business environment,the 31 provinces in China as a whole show differences and hierarchical characteristics.The business environment in the eastern region is better than that in the central and western regions,while the infrastructure construction and talent team construction in the western region are insufficient.Thirdly,adjusting the industrial structure appropriately in the eastern region is most conducive to the development of digital trade.The two sub indicators of the business environment,"Digital Innovation Service Factor" and "Digital Finance Consumer Protection Factor",have a greater impact on digital trade in the eastern region,while the business environment and its sub indicators in the central and western regions have a smaller impact on digital trade compared to the eastern region.Therefore,this article proposes the following suggestions: firstly,the central and western regions should improve the level of digital innovation.Secondly,the central and western regions should improve the level of consumer protection.Thirdly,coordinate the balanced development of digital finance in the eastern and central western regions.