International trade in Digital Economy: Theoretical Reflection and Prospect

Abstract

Under the impact of the wave of digital economy, the transaction object, the transaction method and even the production organization behind the international trade activities have undergone significant changes. Digital trade is characterized by lower production and transaction costs, more significant economies of scale and scope, higher organic composition of capital, platform-based transaction and networked
supply chain, etc. These characteristics challenge the traditional trade theory from the aspects of endogenous comparative advantage, the applicability of classical gravity model, production location and trade pattern, and the reversal of product factor intensity. In the future development, integrating elements with endogenous characteristics and variable factor structure, expanding the existing market structure framework,
promoting the integration of bilateral market theory, location decision theory and international trade theory, so as to explore the international
regulatory rules under digital trade is expected to be the breakthrough direction of international trade theory.