Driven by digital technology, the digital transformation of global trade has given rise to a new type of digital trade characterized by reconstructing commodity forms, breaking through temporal and spatial limitations, and promoting the flow of data elements, becoming a key driving force for global economic recovery and the construction of a trading power. This study focuses on the correlation mechanism between digital trade and foreign direct investment (FDI) at the provincial level, and constructs a digital trade indicator system covering six dimensions: basic environment, logistics network, technological innovation, talent reserve, industrial digitization, and digital industrialization. By using the entropy method to quantitatively measure the development level of multi regional digital trade from 2012 to 2022, and combining the fixed effects model, mediation effects model, and heterogeneity analysis framework, this study systematically explores the impact path and regional differences of digital trade on FDI. Research has found that digital trade has a significant positive driving effect on FDI - each unit of digital trade expansion can drive an average of 0.731 units of FDI growth, mainly through two intermediary mechanisms: reducing transaction costs and increasing residents' disposable income. Heterogeneity analysis further reveals that regions with higher levels of digital infrastructure have stronger information flow efficiency and service supporting capabilities, and their role in driving FDI through transaction cost compression and income effect amplification is more significant; as digital infrastructure upgrades and open policies deepen, areas with relatively weak infrastructure will gradually release and continuously strengthen their promoting effects. The study reveals from both theoretical and empirical dimensions that digital trade attracts foreign investment by restructuring trade forms, optimizing resource allocation, reducing institutional costs, and enhancing consumption capacity. Regional infrastructure differences lead to a gradient distribution of effects. At the practical level, it serves as the core mechanism to promote the coordinated development of digital trade and FDI, optimize investment strategies, assist in high-quality economic development and the construction of a "dual circulation" pattern, highlighting the key role of digital technology driven trade digitization in the development of an open economy.

Thanh-Huyen Truong. Research on the Mechanism of E-commerce Model Innovation Driven by Digital Technology. International Journal of Big Data Intelligent Technology (2025), Vol. 6, Issue 2: 171-178. https://doi.org/10.38007/IJBDIT.2025.060219.

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