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Does the Digital Economy Promote Upgrading the Industrial Structure of Chinese Cities?

Author

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  • Songqin Zhao

    (School of Economics and Management, Nanchang University, Nanchang 330031, China)

  • Diyun Peng

    (School of Economics and Management, Nanchang University, Nanchang 330031, China)

  • Huwei Wen

    (School of Economics and Management, Nanchang University, Nanchang 330031, China
    Research Center of the Central China for Economic and Social Development, Nanchang University, Nanchang 330031, China)

  • Huilin Song

    (School of International Economics and Trade, Jiangxi University of Finance and Economics, Nanchang 330013, China)

Abstract

As the driving force for the upgrading of the global industrial structure, digital technology has been at the helm of transforming the current economic and technological paradigm. This study empirically analyzes the role of the digital economy in the upgrading industrial structure using panel data from 237 prefecture-level cities in China from 2011–2019. Empirical results show that the development of the digital economy has a significant positive and direct effect on the upgrading of industrial structure, as measured by the two indicators of advancement and servitization. In addition, the digital economy significantly promotes upgrading of the technological progress and human capital of Chinese cities, thus promoting upgrading of the industrial structure. Moreover, the spatial autoregressive model (SAR) and the Spatial Durbin model (SDM) both show that the digital economy has a positive spatial spillover effect on upgrading of the industrial structure.

Suggested Citation

  • Songqin Zhao & Diyun Peng & Huwei Wen & Huilin Song, 2022. "Does the Digital Economy Promote Upgrading the Industrial Structure of Chinese Cities?," Sustainability, MDPI, vol. 14(16), pages 1-19, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:16:p:10235-:d:890783
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