Impact of Digital Economy Development on Industrial Structure Upgrading--Based on Two-way Fixed Effects Model Analysis

Abstract

 Digital economy is an important engine for building a modernized economic system. Through new generation information technology, it improves the operation efficiency of industrial chain and expands the innovation space of industrial chain, thus helping to upgrade the industrial structure. Based on the balanced panel data of 30 provincial administrative regions in China from 2012 to 2020, a two-way fixed effects regression model is constructed to empirically test and explore the impact of digital economy development on industrial structure upgrading. It is found that: Digital economy development can significantly promote industrial structure upgrading, and the conclusion still holds after a series of robustness tests. The promotion effect of digital economy development on industrial structure upgrading is regionally heterogeneous and social consumption level heterogeneous, which can significantly promote industrial structure upgrading in western and low social consumption level regions, but not in eastern, central and high social consumption level regions. Accordingly, policy suggestions are made in three aspects: vigorously developing digital economy, formulating regional differentiated digital economy development policies, and coordinating the relationship between consumption upgrading and supply side