The Influence of China´s Outward FDI in RCEO Countries on Bilateral Trade: The Mediating Role of the Digital Economy

This study employs an extended gravity model to assess the impact of China’s direct investment in the Regional Comprehensive Economic Partnership (RCEP) member countries on trade. After measuring the digital economy levels of these countries using principal component analysis, a mediation effect model is applied to examine whether the digital economy serves as an intermediary variable. The results indicate that China’s direct investment in RCEP countries has a positive impact on China’s exports, imports and total trade value with these countries. Moreover, the digital economy plays a positive mediating role in facilitating these trade-enhancing effects.