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Digital Service Trade Exports, Expanding Domestic Demand, and Improving Subjective Welfare Levels

Author(s)

Ling Yang*

Affiliation(s)

Economic School of Shanghai University Shanghai, China *Corresponding Author

Abstract

In order to better leverage the impact of exports on domestic demand and the subjective welfare level of residents, this article systematically studies the mechanism by which digital service trade exports expand domestic demand and improve subjective welfare levels by increasing household income or employment. Through matching UNCTAD and CFPS data, empirical research has found that digital service trade exports significantly expand domestic demand and improve residents' subjective welfare levels, and the effectiveness of the intermediate impact mechanism has been verified. Meanwhile, the promotion effect of digital service trade exports on service consumption is greater than that on physical consumption. From the perspective of physical consumption segmentation, the promotion effect of digital service trade exports on household equipment and daily necessities consumption is greater than that on clothing, shoes and hats consumption and food consumption. From the perspective of service consumption segmentation, the promotion effect of digital service trade exports on residents' cultural, educational, and entertainment consumption is greater than that on transportation and communication consumption and education consumption, but has no significant effect on healthcare consumption. At the same time, the impact of expanding physical consumption on the subjective welfare level of residents through the export of digital service trade is greater than the impact of expanding service consumption on the subjective welfare level of residents. Therefore, this article proposes that we should make good use of the comparative advantage of digital service trade exports to expand domestic demand and enhance people's well-being, thereby contributing to accelerating the formation of a new development pattern with domestic circulation as the mainstay and connecting domestic and international circulations, and continuously improving people's happiness.

Keywords

Digital Service Trade Export; Expand Domestic Demand; Improvement of Subjective Welfare Level; Service Consumption; Physical Consumption

References

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