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Digital economy and industrial agglomeration

Author

Listed:
  • Zeng, Guohua
  • Wu, Mengmeng
  • Yuan, Xinxin

Abstract

The rising digital economy has reshaped social and economic forms, exerting a profound impact on the industrial structure development. However, few studies have linked digital economy with industrial agglomeration. This paper studied the panel data of 30 provinces in China from 2011 to 2020, constructed the corresponding indicator measurement system to analyze the scale level of China's digital economy and the level of industrial agglomeration. It put forward three hypotheses of the mechanism of digital economy affecting industrial agglomeration, including spatial spillover effect and threshold effect, spatial SDM model with two-way fixed effect and threshold regression model were used to make an empirical analysis. It is found that the digital economy inhibits the industrial agglomeration in the local area and has a positive spatial spillover effect on the surrounding areas, whose impact on the industrial agglomeration is regional heterogeneity. Digital economy has non-linear threshold effect on industrial agglomeration, which exists industry heterogeneity.

Suggested Citation

  • Zeng, Guohua & Wu, Mengmeng & Yuan, Xinxin, 2024. "Digital economy and industrial agglomeration," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 475-498.
    • Handle: RePEc:eee:ecanpo:v:84:y:2024:i:c:p:475-498
    DOI: 10.1016/j.eap.2024.09.006
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    References listed on IDEAS

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    1. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    2. Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March.
    3. Serdar Yilmaz & Kingley E. Haynes & Mustafa Dinc, 2002. "Geographic and Network Neighbors: Spillover Effects of Telecommunications Infrastructure," Journal of Regional Science, Wiley Blackwell, vol. 42(2), pages 339-360, May.
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    1. Yuanlong Mao & Wenjing Dai & Yang Yang & Qiaoxia Liang & Zichao Wei, 2025. "Assessing the Impact of the Digital Economy on Carbon Emission Reduction: A Test of the Mediation Effect Based on Industrial Agglomeration," Sustainability, MDPI, vol. 17(16), pages 1-23, August.
    2. Kahaer Abula & Yusupu Aihemaiti, 2025. "Digitalization and Culture–Tourism Integration in China: The Moderated Mediation Effects of Employment Quality, Infrastructure, and New-Quality Productivity," Sustainability, MDPI, vol. 17(19), pages 1-39, September.
    3. Ruxian Li & Jiliang Zheng, 2025. "Digital Economy and Sustainable Development in China: From the Perspective of High-Quality Development of Manufacturing," Sustainability, MDPI, vol. 17(14), pages 1-32, July.
    4. Li, Mingxing & Appiah, Michael & Baffour Gyau, Emmanuel, 2025. "The dynamics of energy generation, consumption, and pricing on industrial growth in the SSA region; exploring the moderating effect of financial development and technological advancement," Technology in Society, Elsevier, vol. 81(C).
    5. Zhong, Kaijun & Lei, Yalin & Zhao, Jun & Jiang, Yong, 2025. "How to enhance China's total-factor energy efficiency via digital-real economy integration: New evidence from dynamic QCA analysis," Energy Economics, Elsevier, vol. 148(C).
    6. Fanke Li & Zhongqingyang Zhang, 2025. "Addressing the Sustainability Challenges: Digital Economy Information Security Risk Assessment," Sustainability, MDPI, vol. 17(14), pages 1-21, July.

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