The Impact of Digital Finance on International Low Carbon Trade Competitiveness

Abstract

Turning into a trader of quality is the key to promoting the efficiency and dy-namics of China's economy, and is also an important support for the realization of socialist modernization. In the low-carbon era, the construction of a trader of quality needs to consider low-carbon economic indicators. Meanwhile, China's financial industry has entered the digital stage, and the rapid development of digital finance has had a significant impact on trade and social economy. Low carbon economy and digital finance bring new requirements and opportunities for trade development. It has become an important issue to study how digital finance can help enhance the low carbon trade competitiveness.Based on the data of 30 provinces in China from 2011 to 2022, this paper studies the impact of digital finance on the competitiveness of international low-carbon trade. Through theoretical analysis and empirical tests, the study finds that: (1) Digital finance significantly promotes international low carbon trade competitiveness; (2) The depth and the digitization degree of digital finance have a positive im-pact on competitiveness; The study also provides theoretical support and prac-tical guidance for the development of PPP(Purchase Power Parity), helping governments and the private sector to better grasp the opportunities of digital finance and low-carbon economy, and design more forward-looking and sus-tainable PPP projects. Meanwhile, the study also provides an important refer-ence for optimizing the regional layout of PPP projects, promoting technological innovation and formulating relevant policies, which helps to achieve a win-win situation for both economic and social benefits.