Do Digitization Inputs in the Paper and Printing Industry Promote Sustainable Trade?—— An Analysis of the Moderating Effect Based on Institutional Quality

Digital transformation has accelerated the penetration of digital inputs into all industries, providing new impetus for sustainable growth in all sectors. As a key pillar of the national economy, the paper and printing industry, with its main products—paper products—holding significant positions in international trade, serves as crucial subject for studying the impacts and strategies of digital transformation. Issues such as carbon emissions and carbon transfer related to trade have drawn increasing attention to sustainable trade. This paper examines the paper and printing industry using panel data from 48 economies between 2005 and 2018. Firstly, we measure the level of digital inputs in each country's paper and printing industry using the input-output method. Secondly, we assess the impact of digital inputs on the sustainable trade of the industry within a two-way fixed-effects model, incorporating robustness tests and heterogeneity analyses. Finally, we introduce institutional quality as a moderating variable to explore its role in the relationship between digital inputs and sustainable trade. The findings indicate that digital inputs significantly promote sustainable trade in the paper and printing industry, with this effect varying based on according to the country's level of economic development and OECD membership. In addition, institutional quality positively moderates the influence of digital inputs to sustainable trade, with government efficiency and regulatory quality playing particularly prominent roles.