Transformations  in
Business & Economics

DIGITAL ECONOMY EMPOWERS HIGH-QUALITY DEVELOPMENT OF MANUFACTURE: THEORY AND EMPIRICAL EVIDENCE FROM CHINA
Xiaolin Jia, Yongqiang Wang

ABSTRACT: Global manufacturing is undergoing profound transformations. Recent technological and industrial revolutions present both opportunities and challenges for high-quality development within the sector and this shift has increasingly become a focal point of academic attention. However, the existing studies lack systematic theoretical insights into how the digital economy enhances the high-quality development of the manufacturing industry. To explore the relationship between the digital economy and the high-quality development of the manufacturing industry, indicator systems were constructed for both areas. Technoeconomic paradigms, technology gaps, and economies of scale theories were applied, and panel data from 30 provinces and cities in China from 2013 to 2022 were employed. In addition, a fixed effects model was used to examine whether the digital economy has a lasting impact on the high-quality development of the manufacturing industry. The influence mechanisms were analyzed from three aspects: technological support, trade openness, and scale effects. Results reveal a significant positive correlation between the digital economy and the high-quality development of manufacturing. Gross Domestic Product (GDP) positively influences high-quality development in the manufacturing sector, while factors, such as technological innovation capability, human capital levels, and government roles negatively affect it. Additionally, the digital economy significantly drives the high-quality development of manufacturing through technology support, trade openness, and scale effects. The conclusion not only enriches the literature in the field of industrial development from the digital economy perspective but also provides important insights for enhancing the real economy through the virtual economy.

KEYWORDS:  High-quality development of manufacturing, Digital economy, Technological support, Trade openness, Scale effects

JEL classification:  D9, E52, G11, G32, M14, O13