The Impact of the Digital Economy on the Resilience of China’s Foreign Trade

Comments 1: In line 196, please add more reference on previous theoretical analysis that "digital economy has a significant positive impact on foreign trade resilience,....".

Response 1: Thank you for pointing this out. We agree with this comment. Therefore, we have supplemented the reference on line 196 regarding the conclusion that 'the digital economy has a significant positive impact on the resilience of foreign trade.'

Comments 2: In section 4.1, please specify what interpolation were used to fill the missing data (list the eqn. etc.). Please also specify how the weights for each factor is determined in table 1.

Response 2: Agree. The interpolation methods and their equations used to fill in the missing data have been added to Section 4.1 (lines 230-238). And the method for determining the weight of each factor in Table 1 has also been supplemented and explained (lines 244 - 246).

Comments 3: In Eqn 1, please specify what i and j stands for. Double check Yit, j  is the “value-added of the *n*th industry, not the jth industry.

Response 3: Thank you for your careful review. We agree with this comment. The meanings of the indices i, j and Y_it,j in Eqn 1 have been supplemented in lines 260 and 262.

Comments 4: For eqn 2, I don't see an ir_it in the equation. Did you mean RIS_it? Please double check.

Response 4: Agree. For the eqn 2, the indicator "ir_it" has been changed to the indicator "RIS_it" accordingly (line 266).

Comments 5: Please put the calculation of degree of Openness into a equation. Please also specify how tax burden is calculated.

Response 5: Thank you for this suggestion. The calculation equations for the degree of openness and tax burden have been added to Section 4.2.4 (Lines 274 - 281).

Comments 6: Please convert all terms in section 4.2.5 into equations, instead of verbally explain how they were calculated.

Response 6: Agree. All the terms in Section 4.2.5 have been converted into the corresponding equations (Lines 285-295).

Comments 7: In section 5.2 line 315, the author stated that "Tests revealed that the benchmark model has both time effects and individual effects". Please refer/specify the test results that coming to this conclusion.

Response 7: Thank you for your reminder. We have supplemented the specific test methods and corresponding results for verifying the time effect and individual effect of the benchmark model. We used the F - test to verify the time effect and the Hausman test to verify the individual effect, and clearly stated the test results and judgment basis, which provides a sufficient basis for the selection of the two - way fixed - effect model. This revision can be found in Section 4.3.1 (lines 305-313)

Minor Comments: Please put all the reference number superscripted for reference 1 to 28. The later ones have the correct formatting.

Response 8: Agree. All the reference numbers have been superscripted and the later ones formatting have been modified correctly as well.

Response to Comments on the Quality of English Language

Point 1: None.

Response 1: Thanks.

Response to Reviewer X Comments

1. Summary

Thank you very much for taking the time to review this manuscript. Please find the detailed responses below and the corresponding revisions/corrections highlighted in the re-submitted files.

2. Questions for General Evaluation

Reviewer’s Evaluation

Response and Revisions

Is the content succinctly described and contextualized with respect to previous and present theoretical background and empirical research (if applicable) on the topic?

Can be improved

We have supplemented the logical connection between the digital economy and its role as a "new engine" of foreign trade growth, and strengthened the contextualization with existing theoretical and empirical research. Relevant revisions are in Section 1.

Are the research design, questions, hypotheses and methods clearly stated?

Can be improved

A summary sentence has been added at the end of the theoretical analysis section to clarify the core logic of the new pathway for improving foreign trade resilience, making the research design and hypotheses more closely linked. The revision is in Section 3.

Are the arguments and discussion of findings coherent, balanced and compelling?

Can be improved

A connecting paragraph has been added between the research conclusions and policy recommendations to clarify the corresponding relationship between empirical results and policy suggestions, enhancing the coherence and persuasiveness of the argument. The revision is in Section 7.

For empirical research, are the results clearly presented?

Must be improved

Through strengthening critical analysis and standardizing academic writing, the argumentation of the experimental results has been further clearly elaborated.

Is the article adequately referenced?

Can be improved

We have supplemented relevant references for the theoretical analysis on line 196, and standardized the formatting of all references to ensure the article is adequately and correctly referenced.

Are the conclusions thoroughly supported by the results presented in the article or referenced in secondary literature?

Must be improved

The conclusions have been further linked to the empirical results through the added connecting content, and are fully supported by the presented results and relevant literature.

3. Point-by-point response to Comments and Suggestions for Authors

Comments 1: Why is the digital economy considered a “new engine” of economic growth in the context of China’s foreign trade?

Response 1: Thank you for this question. We have supplemented the core supporting arguments for the digital economy being regarded as a "new engine" in the context of foreign trade in Section 1. Introduction (lines 40 - 50). It is mainly reflected in three aspects: breaking information asymmetry in cross - border trade, optimizing traditional trade models to reduce costs, and spawning new industries and promoting the transformation of traditional industries. These supplements clearly explain the intrinsic logic of the digital economy driving foreign trade growth.

Comments 2: How does this study aim to identify new pathways for improving China’s foreign trade resilience?

Response 2: We appreciate this inquiry. A summary sentence has been added at the end of Section 3. Theoretical Analysis and Research Hypotheses (lines 232 - 237) to clarify that this study explores new pathways for enhancing foreign trade resilience through a three - dimensional theoretical framework. This framework includes the direct empowerment of the digital economy, the indirect promotion through industrial structure optimization, and the nonlinear adjustment based on threshold variables, which systematically answers the question of pathway identification.

Comments 3: How do the authors justify the need for policy recommendations based on their empirical findings?

Response 3: Thank you for your attention to this point. The above empirical findings provide a solid basis for formulating targeted policy recommendations. The significant positive effect of the digital economy on foreign trade resilience confirms the necessity of accelerating digital economic development; the regional heterogeneity of the effect indicates the need for differentiated regional policies; the mediating role of industrial structure advancement clarifies the direction of industrial policy adjustment; and the nonlinear threshold effect of openness and tax burden provides a quantitative reference for optimizing opening - up strategies and tax policies. Therefore, the policy recommendations are proposed based on this.

Comments 4: The authors should improve critical analysis, identify gaps more clearly.

Response 4: Agree with this constructive suggestion. We have added a critical analysis paragraph in Section 2.3 Research on the Impact of the Digital Economy on Foreign Trade Resilience (lines 142 - 152). This paragraph clearly points out three research gaps in existing studies: ignoring the dual mediating role of industrial structure, insufficient discussion on nonlinear relationships, and simplistic regional heterogeneity analysis, which strengthens the critical analysis of existing literature and clarifies the research value of this paper.

Comments 5: Link literature to the study’s objectives, and refine academic writing.

Response 5: Thank you for this reminder. Firstly, we have added a paragraph at the end of the literature review (lines 153 - 158) to link the literature review with the research objectives, clarifying that this study aims to solve three core objectives based on the deficiencies of existing research. Secondly, we have optimized the academic writing by correcting duplicate words (such as deleting one "systematically" in "systematically systematically reviewed" on line 147), and standardizing indicator expressions in tables.

Comments 6: The authors do not explicitly identify a research gap.

Response 6: This comment has been addressed in the revision of Comment 4. The newly added critical analysis paragraph in Section 2.3 (lines 142 - 152) explicitly identifies three key research gaps in existing studies, and each gap corresponds to the research content of this paper, making the research gap clear and specific.

Comments 7: What is missing in previous work that this study will address?

Response 7: Thank you for pointing out this key point. We have explicitly identified the research gaps in previous work and clarified how this study addresses them in Section 2.3 Research on the Impact of the Digital Economy on Foreign Trade Resilience. Specifically, previous work lacks discussions on the dual mediating role of industrial structure rationalization and advancement, the nonlinear relationship between the digital economy and foreign trade resilience (especially the regulatory effect of openness and tax burden), and in - depth regional heterogeneity analysis covering China's eastern, central, western, and northeastern regions. This study addresses these gaps through a three - dimensional analytical framework including mediating effect analysis, threshold panel model, and multi - regional comparative study.

4. Response to Comments on the Quality of English Language

Point 1: The English could be improved to more clearly express the research.

Response 1: Thank you for this suggestion. We have carefully revised the English expression throughout the manuscript to enhance clarity and accuracy in conveying the research content. This includes optimizing sentence structures, refining terminology usage, and ensuring logical coherence in the presentation of ideas.

5. Additional clarifications

None.

Response to Reviewer 3 Comments

1. Summary

Thank you very much for taking the time to review this manuscript. Please find the detailed responses below and the corresponding revisions/corrections highlighted in the re-submitted files.

2. Questions for General Evaluation

Reviewer’s Evaluation

Response and Revisions

Is the content succinctly described and contextualized with respect to previous and present theoretical background and empirical research (if applicable) on the topic?

Yes

Thanks. The paper systematically sorts out the research on digital economy, foreign trade resilience and their interaction mechanism in the literature review. It clarifies the research gaps of existing studies, such as ignoring the dual mediating role of industrial structure optimization and insufficient discussion on nonlinear relationships. The research content is closely connected with the existing theoretical and empirical results, and the contextualization is comprehensive and accurate.

Are the research design, questions, hypotheses and methods clearly stated?

Yes

Thanks. The paper takes 30 provinces in China from 2012 to 2021 as the research sample, and clearly puts forward three core research objectives around the impact of digital economy on foreign trade resilience. It also proposes three corresponding research hypotheses based on theoretical analysis. The adopted two-way fixed effects model, mediating effect model and threshold panel model are detailed in terms of variable definition, formula setting and test basis, ensuring the clarity and operability of the research methods.

Are the arguments and discussion of findings coherent, balanced and compelling?

Can be improved

We have supplemented and optimized the discussion part of the empirical results. On the basis of the original analysis, we have added the logical connection explanation between different empirical results, such as the link between the direct effect of digital economy on foreign trade resilience and the mediating effect of industrial structure advancement. At the same time, we have objectively discussed the limitations of the research, such as the mediating effect of industrial structure rationalization not passing the robustness test, making the argument more balanced and the discussion more in-depth and compelling.

For empirical research, are the results clearly presented?

Must be improved

We have further optimized the presentation of empirical results. For the descriptive statistical table, benchmark regression table and other key tables, we have added detailed footnotes to explain the meaning of key indicators and the significance level standard. For the threshold effect results, we have supplemented the intuitive explanation of the threshold value and coefficient change trend, and matched the corresponding LR graph to help readers understand. In addition, we have sorted out the text description of the results to make the logical context of the empirical results clearer and easier to follow.

Is the article adequately referenced?

Yes

Thanks. The references selected in the paper cover classic and latest research achievements at home and abroad, involving the connotation, measurement and influence of digital economy and foreign trade resilience. The citation quantity is sufficient, the scope is comprehensive, and all references are closely related to the research content, which provides a solid theoretical basis for the paper's arguments.

Are the conclusions thoroughly supported by the results presented in the article or referenced in secondary literature?

Can be improved

We have strengthened the connection between research conclusions and empirical results. Each conclusion is supplemented with corresponding empirical evidence support. For example, the conclusion that the digital economy significantly enhances foreign trade resilience is supported by the significant positive coefficient of the core explanatory variable in the benchmark regression and robustness test. Meanwhile, we have compared and verified with the relevant conclusions of existing literature, explaining the consistency and innovation of this paper's conclusions, so that the conclusions are more thoroughly supported.

3. Point-by-point response to Comments and Suggestions for Authors

Comments 1: In this article, the authors attempt to demonstrate a direct correlation between the Chinese economy's level of digitalization and industrial production, proposing two additive-multiplicative models of the relationship between the level of digitalization and industrial production. The authors ignore demand as its primary driver. Clear correlations undoubtedly exist between the digitalization of the economy and the level of production, but these are determined by awareness, demand, and consumption.

Response 1: Thank you sincerely for this profound comment. We fully agree with your perspective that demand, awareness, and consumption are essential factors that shape the relationship between economic digitalization and production level. We would like to take this opportunity to clarify the core orientation of the paper, as our research focus is on exploring the impact mechanism of the digital economy on China's foreign trade resilience, rather than constructing additive-multiplicative models between the digitalization level and industrial production. In fact, we have implicitly integrated demand factors into the entire research framework, indicator system, and conclusion analysis with careful consideration. From the perspective of the research framework, foreign trade resilience inherently encompasses the ability to resist, recover from, and restructure in the face of external market demand fluctuations, so the response to demand-side changes is naturally embedded in the core logic of our research. In the construction of the indicator system, indicators such as import and export dependence and the number of cross-border e-commerce comprehensive pilot zones in the foreign trade resilience evaluation system directly reflect the scale of market demand and the efficiency of demand connection. Meanwhile, indicators including the digital inclusive finance index and e-commerce sales in the digital economy evaluation system essentially measure the ability to adapt to digital consumption demand. In the conclusion analysis, we emphasize that the digital economy enhances foreign trade resilience by optimizing traditional trade models and improving the efficiency of supply-demand matching, which is essentially a response to the demand-side logic of connecting overseas markets and adapting to demand upgrading. We believe that the existing research design has comprehensively covered the relevant effects of demand factors and formed a self-consistent logical closed-loop that is compatible with the research objectives.

Comments 2: The authors' work lacks scientific novelty. To improve the work, the authors should have considered the consumer properties of the market and used the Verhulst logistic model or a complex-connected system of saturable models.

Response 2: Thank you for your valuable suggestion on model selection, which has provided a very useful direction for the follow-up expansion and in-depth research of this paper. We carefully analyzed the applicability of the model you recommended and found that the models currently adopted in this paper are more suitable for the research hypotheses, data characteristics, and core objectives of the study, with sufficient scientific rationality. Firstly, the core research hypotheses of this paper involve three aspects: the direct enabling effect of the digital economy on foreign trade resilience, the mediating effect of industrial structure rationalization and advancement, and the threshold effect of openness and tax burden level. The two-way fixed-effects model, mediating effect model, and threshold panel model we selected are mature and widely recognized empirical methods in academic circles for testing such hypotheses. These models can respectively realize the effective control of individual and time effects, the in-depth decomposition of indirect influence paths, and the accurate identification of non-linear regulatory relationships, forming a progressive and comprehensive empirical test framework. Secondly, this paper uses panel data of 30 provinces in China from 2012 to 2021, which is characterized by multiple cross-sectional individuals and a medium time span. The Verhulst logistic model you recommended is more applicable to time-series data or research on the evolutionary law of a single subject, as it is mainly used to describe the saturated growth trend of variables. The complex-connected system of saturable models, on the other hand, has extremely high requirements on data integrity and sample size, which is not fully compatible with the structure of the panel data used in this paper. In terms of scientific novelty, we acknowledge that the paper does not focus on constructing new models. Instead, we focus on the in-depth excavation of the unique mechanism of the digital economy affecting foreign trade resilience. Specifically, we explore the dual mediating role of industrial structure and the non-linear characteristics of threshold variables, and conduct heterogeneous analysis covering four regions of China, which fills the gaps in the existing relevant research to a certain extent. We believe that such innovation in research perspective and in-depth mining of mechanisms have certain academic reference value.

4. Response to Comments on the Quality of English Language

Point 1: The English could be improved to more clearly express the research.

Response 1: Thank you for this suggestion. We have carefully revised the English expression throughout the manuscript to enhance clarity and accuracy in conveying the research content. This includes optimizing sentence structures, refining terminology usage, and ensuring logical coherence in the presentation of ideas.

5. Additional clarifications

None.