Impact of Digital Economy Development on Industrial Structure Upgrading—An Empirical Analysis Based on PVAR Model

Abstract

Based on the panel data of 248 prefecture-level cities in China from 2011-2021, a PVAR model is constructed to empirically compare and analyze the impact of national and regional digital economy development on industrial structure upgrading. The results show that: from the national level, the development of the digital economy can significantly promote the upgrading of industrial structure, the degree of influence rises and then decreases, and lasts longer; the upgrading of industrial structure also affects the development of the digital economy, and the influence changes from negative to positive; there is a long-term, continuous, and significant dynamic effect between the digital economy and the transformation and upgrading of industrial structure, and the two affect each other. From the perspective of each region, the impact of digital economy development on industrial structure upgrading is somewhat different. The industrial structure in the western region is the most sensitive to the digital economy changes, followed by the eastern region and the weakest in the central region. However, the industrial structure upgrading in all regions is significantly and positively influenced by the development of the digital economy.