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Dynamic Nonlinear Relationship between Digital Transformation, Green Transformation in Manufacturing Industry and Labor Structure: Evidence from Panel VAR Analysis

Author

Listed:
  • Haiyong Jiang

    (School of Business, Guilin University of Technology, Guilin, China)

  • Yinghui Han

    (School of Business, Guilin University of Technology, Guilin, China)

  • Yue Wang

    (Ping An Bank Co., Ltd., Jinan Branch, Jinan, China)

  • Zhenyu Chen

    (Affairs Service Center of Ecological Environment of Liaoning Province, Shenyang, China)

Abstract

The digital transformation of manufacturing industry can promote the development of green transformation and promote the differentiation of workers’ skill structure; On the other hand, it will also hinder the green development due to the huge energy consumption generated by the application of digital technology and facilities. In addition, the green transformation of manufacturing industry will also have differentiated impacts on the employment of labour with different skills due to the innovation of green technology. The existing research has not discussed too much about the interaction among the digital transformation and green transformation in manufacturing industry and labour structure. So, this paper uses the PVAR model to examine the dynamic relationship between digital and green transformation within the industrial sector from the perspective of labour structure, specifically analyzing the impact difference across regions. The results suggest that there is a reciprocal connection between the digitization of manufacturing sector and the labour structure, particularly in the eastern region of China, but the overall interaction between the two remains weak. The interactive between the green transformation of manufacturing industry and the labour structure in the central and western areas has been delayed over periods 1-6. Digital and green manufacturing transformation reinforce each other in central and western regions. However, the digital revolution in the manufacturing industry is hindered by the green transformation in eastern region.

Suggested Citation

  • Haiyong Jiang & Yinghui Han & Yue Wang & Zhenyu Chen, 2023. "Dynamic Nonlinear Relationship between Digital Transformation, Green Transformation in Manufacturing Industry and Labor Structure: Evidence from Panel VAR Analysis," Review of Economic Assessment, Anser Press, vol. 2(3), pages 16-36, October.
    • Handle: RePEc:bba:j00010:v:2:y:2023:i:3:p:16-36:d:245
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    References listed on IDEAS

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    1. James Harrigan & Ariell Reshef & Farid Toubal, 2021. "The March of the Techies: Job Polarization Within and Between Firms," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-02973332, HAL.
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    3. Magacho, Guilherme & Espagne, Etienne & Godin, Antoine & Mantes, Achilleas & Yilmaz, Devrim, 2023. "Macroeconomic exposure of developing economies to low-carbon transition," World Development, Elsevier, vol. 167(C).
    4. Harrigan, James & Reshef, Ariell & Toubal, Farid, 2021. "The March of the Techies: Job Polarization Within and Between Firms," Research Policy, Elsevier, vol. 50(7).
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