The Impact of Digital Service Trade on Carbon Total Factor Productivity : Empirical Evidence from Cross-Country Panel Data

In the era of digital economy, digital service trade (DST) occupies an increasingly important position in international trade and has a significant impact on the low-carbon development of the global economy. This paper investigates the theoretical mechanism of the effect of DST on carbon total factor productivity (CTFP) and empirically examines the impact of DST on CTFP using panel data from 64 countries from 2005 to 2020. The results reveal that DST significantly promotes CTFP. Moreover, DST can improve CTFP through technological progress and industrial structure upgrading. In addition, both digital service imports and exports have significantly increased CTFP. Furthermore, DST has a positive effect on CTFP in both developed and developing economies, though the impact in developing economies is greater. Finally, corresponding policy implications are suggested