Artificial intelligence and export green sophistication

Using data from the listed Chinese manufacturing firms and China Customs for the period 2007–2016, this study examines the effects of Artificial Intelligence (AI) on firms’ export green sophistication (EGS). The findings show that AI promotes firms’ EGS, with the results varying depending on firms’ types. Specifically, AI (i) enhances the EGS for processing trade firms more than for general trade firms; (ii) improves the EGS for firms in highly competitive industries rather than for low-competitive industries; and (iii) benefits the EGS for eastern firms more than for central and western firms. In addition, the channels through which AI promotes firms’ EGS are by enhancing green technology innovation and reducing the export variable costs of firms. Intellectual property rights (IPR) protection and degree of marketization positively moderate the relationship between AI and firms’ EGS.