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Nonlinear impacts of information and communications technology investment on industrial structure upgrading: the role of marketization

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  • Meng Yan
  • Chaoxian Wang
  • Weidong Zhang

Abstract

This paper employs the dynamic panel threshold model to estimate the industrial upgrading effect of information and communications technology (ICT) investment in view of the role of marketization. Based on provincial-level data from 2008 to 2016 in China, the empirical results show that under a better institutional environment of marketization, ICT investment has an increasing marginal effect on the upgrading of the industrial structure. This implies that the diminishing marginal effect of ICT investment is compensated by the promotion of marketization. Overall, with higher-quality development of the market economy, ICT investment will play a more active role in upgrading the industrial structure.

Suggested Citation

  • Meng Yan & Chaoxian Wang & Weidong Zhang, 2023. "Nonlinear impacts of information and communications technology investment on industrial structure upgrading: the role of marketization," Applied Economics Letters, Taylor & Francis Journals, vol. 30(3), pages 336-342, February.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:3:p:336-342
    DOI: 10.1080/13504851.2021.1985066
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