IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i14p10847-d1191343.html
   My bibliography  Save this article

The Impact of Digital Economy Development on Industrial Restructuring: Evidence from China

Author

Listed:
  • Qingjun Li

    (Institute of Innovation and Development, Weifang University, Weifang 261061, China)

  • Shuliang Zhao

    (School of Public Affair, University of Science and Technology of China, Hefei 230026, China)

Abstract

This paper aims to analyze how the digital economy affects industrial restructuring and examine the mediating role of the relevant factors. Based on the analysis of the effect mechanism of the digital economy development on industrial restructuring, this paper constructs an improved measuring index system of digital economy covering digital infrastructure, digital industrialization, and industrial digitalization, and measures regional digital economic growth based on provincial panel data in China from 2013 to 2020 by using the entropy TOPSIS method, empirical analyses on the impact of the digital economy on industrial restructuring, and verifies the mediating effect of human capital, technological innovation, and financial development in this process. Research findings are as follows: (i) Digital economic growth demonstrates a considerable positive effect of the speed, efficiency of industrial restructuring, and industrial structure rationalization. (ii) Digital economy indirectly boosts industrial restructuring by affecting human capital, technological innovation, and financial development. The findings in this study are of theoretical significance to interpret the effect of digital economic growth on industrial restructuring, facilitating relevant economies in the decision-making of industrial restructuring and upgrading.

Suggested Citation

  • Qingjun Li & Shuliang Zhao, 2023. "The Impact of Digital Economy Development on Industrial Restructuring: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:14:p:10847-:d:1191343
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/14/10847/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/14/10847/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dong-hyun Oh, 2010. "A global Malmquist-Luenberger productivity index," Journal of Productivity Analysis, Springer, vol. 34(3), pages 183-197, December.
    2. Mandelman, Federico S. & Zlate, Andrei, 2012. "Immigration, remittances and business cycles," Journal of Monetary Economics, Elsevier, vol. 59(2), pages 196-213.
    3. Charles J. Corbett, 2018. "How Sustainable Is Big Data?," Production and Operations Management, Production and Operations Management Society, vol. 27(9), pages 1685-1695, September.
    4. Shuaitao Jiao & Qiubi Sun, 2021. "Digital Economic Development and Its Impact on Econimic Growth in China: Research Based on the Prespective of Sustainability," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    5. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    6. Guoxiang Li & Keqiang Wang & Hongmei Liu, 2021. "Construction land reduction, rural financial development, and industrial structure optimization," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1783-1803, September.
    7. Arne Isaksen & Emelie Langemyr Eriksen & Jan Ole Rypestøl, 2020. "Regional industrial restructuring: Asset modification and alignment for digitalization," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1454-1470, December.
    8. Shuangjie Li & Wei Wang & Liming Wang & Ge Wang, 2023. "Digital Economy and 3E Efficiency Performance: Evidence from EU Countries," Sustainability, MDPI, vol. 15(7), pages 1-18, March.
    9. Jonas Soluk & Ivan Miroshnychenko & Nadine Kammerlander & Alfredo De Massis, 2021. "Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities," Entrepreneurship Theory and Practice, , vol. 45(4), pages 867-905, July.
    10. Yang Liu & Yiying Jiang & Zhaobin Pei & Na Xia & Aijun Wang, 2023. "Evolution of the Coupling Coordination between the Marine Economy and Digital Economy," Sustainability, MDPI, vol. 15(6), pages 1-25, March.
    11. Fred Gault, 2019. "User Innovation in the Digital Economy," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(3), pages 6-12.
    12. Ma, Dan & Zhu, Qing, 2022. "Innovation in emerging economies: Research on the digital economy driving high-quality green development," Journal of Business Research, Elsevier, vol. 145(C), pages 801-813.
    13. Yilin Zhao & Feng He & Ying Feng, 2022. "Research on the Industrial Structure Upgrading Effect of the Employment Mobility of Graduates from China’s “Double First-Class” Colleges and Universities," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    14. Karishma Banga, 2022. "Impact of global value chains on total factor productivity: The case of Indian manufacturing," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 704-735, May.
    15. Amin Mahmoudi & Saad Ahmed Javed, 2022. "Probabilistic Approach to Multi-Stage Supplier Evaluation: Confidence Level Measurement in Ordinal Priority Approach," Group Decision and Negotiation, Springer, vol. 31(5), pages 1051-1096, October.
    16. Xin Zhang & Yaoyu Xu & Liang Ma, 2022. "Research on Successful Factors and Influencing Mechanism of the Digital Transformation in SMEs," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    17. Jingrong Li & Bowen Li, 2022. "Digital inclusive finance and urban innovation: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 1010-1034, May.
    18. Xingmei Jia, 2023. "Digital Economy, Factor Allocation, and Sustainable Agricultural Development: The Perspective of Labor and Capital Misallocation," Sustainability, MDPI, vol. 15(5), pages 1-19, March.
    19. Gruber, Harald, 2019. "Proposals for a digital industrial policy for Europe," Telecommunications Policy, Elsevier, vol. 43(2), pages 116-127.
    20. Jinqi Su & Ke Su & Shubin Wang, 2021. "Does the Digital Economy Promote Industrial Structural Upgrading?—A Test of Mediating Effects Based on Heterogeneous Technological Innovation," Sustainability, MDPI, vol. 13(18), pages 1-24, September.
    21. Jan Ole Rypestøl, 2020. "Regional Industrial Restructuring," Studies on Entrepreneurship, Structural Change and Industrial Dynamics, in: Luís Farinha & Domingos Santos & João J. Ferreira & Marina Ranga (ed.), Regional Helix Ecosystems and Sustainable Growth, pages 125-146, Springer.
    22. Zhihua Lai & Bifeng Wang & Xiang He, 2023. "Research on the Digital Transformation of Producer Services to Drive Manufacturing Technology Innovation," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    23. Fu, Junhui & Liu, Yufang & Chen, Rongda & Yu, Xiaojian & Tang, Wen, 2020. "Trade openness, internet finance development and banking sector development in China," Economic Modelling, Elsevier, vol. 91(C), pages 670-678.
    24. Valentina Amuso & Giuliano Poletti & Donato Montibello, 2020. "The Digital Economy: Opportunities and Challenges," Global Policy, London School of Economics and Political Science, vol. 11(1), pages 124-127, February.
    25. Garonna, Paolo & Sica, Francesca G. M., 2000. "Intersectoral labour reallocations and unemployment in Italy," Labour Economics, Elsevier, vol. 7(6), pages 711-728, November.
    26. Jiang, Kangqi & Chen, Zhongfei & Rughoo, Aarti & Zhou, Mengling, 2022. "Internet finance and corporate investment: Evidence from China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 77(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiawei Chen & Zhijin Xu, 2024. "The Impact of the Digital Divide on Labor Mobility and Sustainable Development in the Digital Economy," Sustainability, MDPI, vol. 16(22), pages 1-27, November.
    2. Tiantian Su & Cuixia Li, 2024. "Has the Digital Economy Boosted Carbon Reduction in Livestock Farming in China?," Agriculture, MDPI, vol. 14(9), pages 1-23, September.
    3. Dandan Qiao & Huaxia Rui & Qian Xiong, 2023. "AI and Jobs: Has the Inflection Point Arrived? Evidence from an Online Labor Platform," Papers 2312.04180, arXiv.org, revised Aug 2024.
    4. Shun Yiu & Rob Seamans & Manav Raj & Ted Liu, 2024. "Strategic Responses to Technological Change: Evidence from ChatGPT and Upwork," Papers 2403.15262, arXiv.org, revised Apr 2024.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chunhua Luo & Dianlong Wei & Wunhong Su & Jinjing Lu, 2023. "Association between Regional Digitalization and High-Quality Economic Development," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    2. Xueyang Wang & Xiumei Sun & Haotian Zhang & Chaokai Xue, 2022. "Digital Economy Development and Urban Green Innovation CA-Pability: Based on Panel Data of 274 Prefecture-Level Cities in China," Sustainability, MDPI, vol. 14(5), pages 1-21, March.
    3. Senhua Huang & Lingming Chen, 2023. "The Impact of the Digital Economy on the Urban Total-Factor Energy Efficiency: Evidence from 275 Cities in China," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    4. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Sainan Cheng & Guohua Qu, 2023. "Research on the Effect of Digital Economy on Carbon Emissions under the Background of “Double Carbon”," IJERPH, MDPI, vol. 20(6), pages 1-27, March.
    6. Quan Xiao & Yu Wang & Haojie Liao & Gang Han & Yunjie Liu, 2023. "The Impact of Digital Inclusive Finance on Agricultural Green Total Factor Productivity: A Study Based on China’s Provinces," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    7. Wei Yang & Qiuxia Chen & Qiuqi Guo & Xiaoting Huang, 2022. "Towards Sustainable Development: How Digitalization, Technological Innovation, and Green Economic Development Interact with Each Other," IJERPH, MDPI, vol. 19(19), pages 1-17, September.
    8. 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.
    9. Shaolun Zeng & Huili Yang, 2023. "A Bibliometric and Visualization Analysis of Knowledge Mapping in Digital Economy Research, 1992–2022," Sustainability, MDPI, vol. 15(8), pages 1-15, April.
    10. Li Chen & Yuanbo Zhang, 2023. "Does the Development of the Digital Economy Promote Common Prosperity?—Analysis Based on 284 Cities in China," Sustainability, MDPI, vol. 15(5), pages 1-16, March.
    11. Kai Chen & Feng Guo & Shuang Xu, 2022. "The Impact of Digital Economy Agglomeration on Regional Green Total Factor Productivity Disparity: Evidence from 285 Cities in China," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    12. Hong Tang & Chaoyue Cai & Chunxiao Xu, 2022. "Does the Digital Economy Improve Urban Tourism Development? An Examination of the Chinese Case," Sustainability, MDPI, vol. 14(23), pages 1-23, November.
    13. Xinfeng Chang & Jian Su & Zihe Yang, 2022. "The Effect of Digital Economy on Urban Green Transformation—An Empirical Study Based on the Yangtze River Delta City Cluster in China," Sustainability, MDPI, vol. 14(21), pages 1-19, October.
    14. Lin Zhu & Xiaoming Li & Yao Huang & Fangyuan Liu & Chengji Yang & Dongyang Li & Hongpeng Bai, 2023. "Digital Technology and Green Development in Manufacturing: Evidence from China and 20 Other Asian Countries," Sustainability, MDPI, vol. 15(17), pages 1-20, August.
    15. Jianfeng Guo & Kai Zhang & Kecheng Liu, 2022. "Exploring the Mechanism of the Impact of Green Finance and Digital Economy on China’s Green Total Factor Productivity," IJERPH, MDPI, vol. 19(23), pages 1-18, December.
    16. Sisi Zhang & Xiaoyu Ma & Qi Cui & Jiamin Liu, 2024. "Digitalization and urban resilience: how does the allocation of digital factors affect urban resilience under energy constraints in China?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23613-23641, September.
    17. Daniela Firoiu & Ramona Pîrvu & Elena Jianu & Laura Mariana Cismaș & Sorin Tudor & Gabriela Lățea, 2022. "Digital Performance in EU Member States in the Context of the Transition to a Climate Neutral Economy," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    18. Shen, Hongshan & Qin, Mengyao & Li, Tianyi & Zhang, Xuan & Zhao, Yang, 2024. "Digital finance and industrial structure upgrading: Evidence from Chinese counties," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    19. Haomiao Zhai & Fan Yang & Fuxia Gao & Stavros Sindakis & Gazal Showkat, 2024. "Digital Transformation and Over-Investment: Exploring the Role of Rational Decision-Making and Resource Surplus in the Knowledge Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 14103-14134, September.
    20. Xin, Xinyi & Zhang, Anquan & Liu, Lu, 2024. "Study on the influence of Internet finance on urban household savings rate: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 90(C), pages 45-61.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:14:p:10847-:d:1191343. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.