Abstract:To analyze the impact of digital service trade imports on export product quality, a multinational panel dataset was constructed using the UNCTAD database, CEPII-BACI trade database, and World Bank database covering the period from 2005 to 2020. A two-way fixed effects model was employed to investigate the effect of global digital service trade imports on export product quality. It is indicated that digital service trade imports promote the upgrading of export product quality. These findings remain robust and significant after robustness tests. Robustness tests included replacing core explanatory variables, excluding samples from exceptional years, employing alternative empirical regression methods, and winsorizing data. Endogeneity issues, such as sample selection bias and omitted variable bias, were also addressed, with results remaining significant. Mechanism tests reveal that export product quality is enhanced by digital service trade imports through the boosting of national innovation capability and industrialization level. Heterogeneity analysis shows a more pronounced positive effect of digital service trade imports on export product quality upgrading in specific contexts. These contexts include countries with low net product taxes, countries experiencing improved trade conditions, countries with a high depth of credit information index, developing countries, and countries with a high transport service index. Policy recommendations are proposed to amplify this upgrading effect. Recommendations include strengthening innovation capacity in digital technology, vigorously cultivating new types of digital talent, enhancing infrastructure construction for digital service trade, improving the industrialization level of digital trade, and establishing a sound and efficient digital service trade system