Abstract:
Enhancing digital connectivity, advancing cross-border e-commerce (CE), and optimizing logistics performance (LP) are fundamental pillars for boosting trade flows between trading partners. However, the multifaceted impacts of digitalization, CE, and LP on China-Africa (C-A) trade remain underexplored. Therefore, employing the gravity model, this study examines the impacts of digitalization, CE, and LP on C-A trade using data on Chinese trade flow to 53 African countries from 2007 to 2023. Further analysis is conducted by accounting for African countries' income, population, resources, and institutional heterogeneity. We also control for the impact of digitalization and logistics performance distance between China and African countries on C-A trade. The findings provide evidence that the digitalization of African countries and China significantly enhances C-A trade. Moreover, CE and LP improvements in China positively affect C-A trade, revealing that promoting the sustainable development of CE and LP can lead to increased trade integration between China and African countries. Furthermore, the effects of digitalization, CE, and LP on C-A trade are influenced by heterogeneity in the income level, population size, and institutional performance of African countries, revealing more beneficial effects in middle-income countries, more populated countries, and countries with better institutional quality. Policy suggestions are forwarded based on the findings.
