The Impact of Digital Product Imports on the Export Resilience of Chinese Firms

Abstract

Imports of digital products have become an important channel for Chinese firms to enhance export resilience and cope with external shocks. Using matched data from the Annual Survey of Industrial Firms and China Customs, this paper empirically examines the impact of digital product imports on firms’ export resilience and its underlying mechanisms, with the 2008 global financial crisis serving as the external shock scenario. The results show that imports of digital products significantly improve the export resilience of Chinese firms, and this finding remains robust after a series of robustness tests. The findings of this study provide implications for China to leverage digital trade to strengthen firms’ export resilience and promote the development of a trading nation.