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Internet Development and Structural Transformation: Evidence from China

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  • Yi Li

Abstract

We study the effects of Internet development on structural transformation. To guide empirical work, we develop a basic model where the effect of Internet development on industrial development depends on the improvement of production technology of enterprises. We test the predictions of the model by studying the application of e-commerce, the sales revenue of basic software products and the number of computers used in China, which formed the basis of Internet development. We find that technical change and development in Internet was strongly labor-saving and led to industrial transformation, as predicted by the model. Â JEL classification numbers: J21, O14, O33, L86

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  • Yi Li, 2020. "Internet Development and Structural Transformation: Evidence from China," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(1), pages 1-8.
    • Handle: RePEc:spt:apfiba:v:10:y:2020:i:1:f:10_1_8
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    3. 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.

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    More about this item

    Keywords

    Internet Development; Structural Transformation;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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