The Influence of the Digital Economy on the Foreign Trade Competitiveness of Hunan Province in China

With the evolution of the Internet, artificial intelligence, and other technologies, the era of the digital economy has quietly emerged. The digital economy's growth is a major trend, and China is dedicated to building data power and strengthening foreign trade competitiveness (FTC). As an essential strategic region, Hunan Province should grasp the opportunities of the digital economy and constantly develop and increase its competitiveness. This research will explore the effect of Digital economy (DIG) on the FTC of Hunan Province. The study collected data from the region from 2013 to 2022 and Stata 17 software was applied to obtain the research outcomes. The findings indicate that DIG can significantly enhance the development of FTC in Hunan Province. This result remains consistent even after conducting robustness tests, showing its reliability. Furthermore, the positive impact is even more pronounced in urban agglomerations of major cities and larger areas. The paper's main innovation lies in its focus on the Hunan Province region, which holds significant regional importance and plays a key role in enhancing China's FTC.