Health welfare in the digital era: Exploring the impact of digital trade on residents' health

Abstract

As a product combining information and communication technology, digital technology, and traditional trade, digital trade represents a new form of international trade development in the context of economic globalization. As its scale continues to expand, digital trade not only profoundly impacts consumer health behaviors and environmental pollution control but also enhances opportunities for residents to access healthcare products and services. This could potentially have a significant promoting effect on residents' health levels. However, the extent and mechanisms through which digital trade affects residents' health remain unclear. Accordingly, this study fills in a gap in the research by calculating the provincial-level digital trade index for China from 2012–2020 and matching it with data from the China Family Panel Studies. The goal is to find the micro-causal mechanisms of digital trade on residents' health from green consumption and environmental improvement perspectives. The results show that digital trade reduces residents' medical expenses and improves their health. We use a quasi-natural experiment by treating the cross-border e-commerce comprehensive pilot zone as a digital trade treatment group and conducting a difference-in-differences estimation, finding that the health effects of digital trade remain significant. Heterogeneity indicates that the health effects of digital trade are powerful for middle- and high-income households and rural residents. In the east and center, in regions with well-developed transportation infrastructure and digital financial inclusion, the development of digital trade is more conducive to residents' health. Additionally, we demonstrate that digital trade can affect residents' health by promoting green consumption, eliminating energy poverty (i.e., improving indoor air pollution), and enhancing environmental quality (i.e., improving outdoor environmental pollution). This study provides solid scientific empirical evidence for enhancing human sustainable development through global digital trade.