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<p>Digital growth and trade in the technological sector play a vital role in fostering sustainable development and improving living standards globally. Our study aims to investigate the impact of digitalization, geographical factors, and technology-related bilateral trade on cross-sectional economic growth between China and East Asian countries from 2005 to 2022 by employing the Pseudo Poisson Maximum Likelihood (PPML) model. The outcomes reveal that digitalization significantly enhances cross-sectional economic growth. However, bilateral trade in internet services and computer &amp; communication promotes, while bilateral trade in ICT goods and technological services reduces cross-sectional economic growth. Moreover, geographical factors such as shared culture, free trade agreements, and improved border sharing promote economic growth, while language barriers, colonial legacies, and long distances hinder it. Furthermore, the findings across the subsections examine that digitalization, geographical factors, and technological bilateral trade exert a more substantial influence on cross-sectional economic growth in high-income countries, with comparatively moderate impacts observed in low-income and neighboring countries. Additionally, among the control variables, the inflation rate and gross capital formation are found to have an adverse effect, while GDP per capita significantly contributes to economic growth. Policymakers should invest in digital infrastructure, strengthen trade agreements and reduce geographical barriers, and improve bilateral ties in the technological sector to drive economic development.</p>

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Digitalization and China-East Asia economic development: assessing the impact of geography and bilateral technological trade

  • 期刊论文

  • 发表日期：

    2025年8月30日

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  • Umer Shahzad

摘要

Digital growth and trade in the technological sector play a vital role in fostering sustainable development and improving living standards globally. Our study aims to investigate the impact of digitalization, geographical factors, and technology-related bilateral trade on cross-sectional economic growth between China and East Asian countries from 2005 to 2022 by employing the Pseudo Poisson Maximum Likelihood (PPML) model. The outcomes reveal that digitalization significantly enhances cross-sectional economic growth. However, bilateral trade in internet services and computer & communication promotes, while bilateral trade in ICT goods and technological services reduces cross-sectional economic growth. Moreover, geographical factors such as shared culture, free trade agreements, and improved border sharing promote economic growth, while language barriers, colonial legacies, and long distances hinder it. Furthermore, the findings across the subsections examine that digitalization, geographical factors, and technological bilateral trade exert a more substantial influence on cross-sectional economic growth in high-income countries, with comparatively moderate impacts observed in low-income and neighboring countries. Additionally, among the control variables, the inflation rate and gross capital formation are found to have an adverse effect, while GDP per capita significantly contributes to economic growth. Policymakers should invest in digital infrastructure, strengthen trade agreements and reduce geographical barriers, and improve bilateral ties in the technological sector to drive economic development.