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The Development of the Modern Logistics Industry and Its Role in Promoting Regional Economic Growth in China’s Underdeveloped Northwest, Driven by the Digital Economy

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  • Jiang Lu

    (Faculty of Business and Management, Shah Alam Campus, Universiti Teknologi MARA, Shah Alam 40450, Malaysia
    Faculty of Business, Universidade Da Cidade De Macau, Macao 999078, China)

  • Soo-Cheng Chuah

    (Faculty of Business and Management, Puncak Alam Campus, Universiti Teknologi MARA, Shah Alam 42300, Malaysia)

  • Dong-Mei Xia

    (Center for Career Capability Development, Chongqing Institute of Engineering, Ban’an District, Chongqing 400056, China
    Family Education College, Chongqing University of Education, Nanshan Street, Nanshan District, Chongqing 400065, China)

  • Joston Gary

    (GOVCOPP—Research Unit on Governance, Competitiveness and Public Policies, DEGEIT—Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, 3810-193 Aveiro, Portugal
    FEK—Division of Business Administration, IEI—Department of Management and Engineering, Linköping University, 581-83 Linkoping, Sweden)

Abstract

The digital economy is a key driver of industrial upgrading and regional growth. Focusing on Gansu Province—an under-represented, less-developed region in northwest China—this study constructs a multidimensional digital economy index (DEI) for 2009–2023 under a unified normalisation and weighting scheme. Two complementary MCDA approaches—entropy-weighted TOPSIS and SESP-SPOTIS—are implemented on the same 0–1 normalised indicators. Robustness is assessed using COMSAM sensitivity analysis and is benchmarked against a PCA reference. The empirical analysis then estimates log-elasticity models linking modern logistics production (MLP) and the DEI to the provincial GDP and sectoral value added, with inferences based on White heteroskedasticity–robust standard errors and bootstrap confidence intervals. Results show a steady rise in the DEI with a temporary dip in 2021 and recovery thereafter. MLP is positively and significantly associated with GDP and value added in the primary, secondary, and tertiary sectors. The DEI is positively and significantly associated with GDP, the primary sector, and the tertiary sector, but its effect is not statistically significant for the secondary sector, indicating a manufacturing digitalisation gap relative to services. Cross-method agreement and narrow sensitivity bands support the stability of these findings. Policy implications include continued investment in digital infrastructure and accessibility, targeted acceleration of manufacturing digitalisation, and the development of a “digital agriculture–smart logistics–green development” pathway to foster high-quality, sustainable regional growth.

Suggested Citation

  • Jiang Lu & Soo-Cheng Chuah & Dong-Mei Xia & Joston Gary, 2025. "The Development of the Modern Logistics Industry and Its Role in Promoting Regional Economic Growth in China’s Underdeveloped Northwest, Driven by the Digital Economy," Economies, MDPI, vol. 13(9), pages 1-32, September.
    • Handle: RePEc:gam:jecomi:v:13:y:2025:i:9:p:261-:d:1743738
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    References listed on IDEAS

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    1. Borui Yan & Bo Yao & Chenjing Zhang, 2023. "Industrial structure, high-quality development of logistics industry and the economy," PLOS ONE, Public Library of Science, vol. 18(5), pages 1-18, May.
    2. Francesco Ciardiello & Andrea Genovese, 2023. "A comparison between TOPSIS and SAW methods," Annals of Operations Research, Springer, vol. 325(2), pages 967-994, June.
    3. David F. Hendry, 2024. "A Brief History of General‐to‐specific Modelling," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 86(1), pages 1-20, February.
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