On the coevolution of digital transformation and international trade network

Abstract

Digital transformation (DT) is considered the next major application of information technologies in society and economy. Many experts believe that DT is a key driver to promote international trade. On the other hands, factors like GDP or trade may impact the DT development. In this research, we investigate the relationship between international trade network and DT development of a country through the lens of a longitudinal study. Annual trade network of the 27 EU states from 2017 to 2022 was constructed from import data. The digital economy and society index (EuroStat) was used to surrogate the DT development. Stochastic actor oriented model was used to study the coevolution of trade network and DT development. It is found that trade reciprocity and transitivity existed among EU states, higher DT development tended to shrink import partners pool, and countries tended to import from other states with a similar DT or GDP level.