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Economic Analysis: Theory and Practice
 

A study of the impact of digital trade development in the Eurasian Economic Union on China's foreign trade costs

Vol. 23, Iss. 6, JUNE 2024

Received: 11 April 2024

Received in revised form: 20 April 2024

Accepted: 2 May 2024

Available online: 28 June 2024

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: F13, F17

Pages: 1038–1054

https://doi.org/10.24891/ea.23.6.1038

Hou Jie Xinjiang University of Finance and Economics, Urumqi, Xinjiang, People's Republic of China
1015191157@qq.com

https://orcid.org/0009-0007-8876-1152

Zhang He Xinjiang University of Finance and Economics, Urumqi, Xinjiang, People's Republic of China
2695694838@qq.com

https://orcid.org/0000-0001-8654-0697

Subject. The article addresses the development of digital trade between the Eurasian Economic Union and China.
Objectives. The aim is to investigate the impact of digital trade development in the Eurasian Economic Union on China's foreign trade costs.
Methods. The study draws on general scientific research methods.
Results. We built a system of indices for evaluation of the development of digital trade in four dimensions, applied TOPSIS relative entropy method (a method of preference of order by similarity to the ideal solution) to measure the level of digital development of the Eurasian Economic Union from 2010 to 2020. The extended gravity model was used to empirically analyze the impact of the level of digital trade development of the Eurasian Economic Union on China's foreign trade costs.
Conclusions. Digital trade in the Eurasian Economic Union is developing rapidly, while its overall level remains low, and there are certain differences between member States. At the same time, the level of digital trade development has significantly reduced China's foreign trade costs.

Keywords: digital economic development, horizontal entropy method, gravity model, foreign trade costs

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