IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i11p9081-d1163863.html

The Convergence between Digital Industrialization and Industrial Digitalization and Export Technology Complexity: Evidence from China

Author

Listed:
  • Yaozhi Xu

    (Alibaba Business School, Hangzhou Normal University, Hangzhou 311121, China)

  • Liling Xu

    (Alibaba Business School, Hangzhou Normal University, Hangzhou 311121, China)

Abstract

The wave of digitalization is driving the restructuring of the global value chain, providing an excellent opportunity for China to leapfrog into the digital era. The convergence between digital industrialization and industrial digitalization (hereinafter referred to as CDIID) is an indicator to measure the sustainability of the digital economy. The main objective of this paper is to measure the level of CDIID in China and verify the impact of CDIID on export technology complexity and its mechanism. The nonparametric stochastic frontier method is used to measure the level of CDIID of each province in China from 2013 to 2019, and the fixed-effect model is used to investigate the impact effect and mechanism of CDIID on export technology complexity. Empirical research finds that the level of CDIID plays a positive role in promoting the export technology complexity, and in the short term, more attention should be paid to the development of industrial digitalization to enhance export technology complexity. The mechanism test results show that CDIID enhances export technology complexity through the channels of industrial structure upgrading and innovation ability improvement. In terms of industrial digitalization driven by digital industrialization, the channel of innovation ability improvement has a significant impact. In terms of the path of industrial digitalization to promote digital industrialization, it has an inhibitory effect on both channels in the short run. This paper provides empirical evidence and a decision-making basis for China to promote the sustainable development of the digital economy and build new advantages in international competition.

Suggested Citation

  • Yaozhi Xu & Liling Xu, 2023. "The Convergence between Digital Industrialization and Industrial Digitalization and Export Technology Complexity: Evidence from China," Sustainability, MDPI, vol. 15(11), pages 1-18, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:9081-:d:1163863
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/11/9081/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/11/9081/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2008. "A Retrospective Look at the U.S. Productivity Growth Resurgence," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 3-24, Winter.
    2. Huaping Guan & Binhua Guo & Jianwu Zhang, 2022. "Study on the Impact of the Digital Economy on the Upgrading of Industrial Structures—Empirical Analysis Based on Cities in China," Sustainability, MDPI, vol. 14(18), pages 1-18, September.
    3. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    4. Philippe Aghion & Ufuk Akcigit & Antonin Bergeaud & Richard Blundell & David Hemous, 2019. "Innovation and Top Income Inequality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 1-45.
    5. Zhou, Xianbo & Li, Kui-Wai & Li, Qin, 2011. "An analysis on technical efficiency in post-reform China," China Economic Review, Elsevier, vol. 22(3), pages 357-372, September.
    6. Karishma Banga, 2019. "Digital technologies and 'value' capture in global value chains: Empirical evidence from Indian manufacturing firms," WIDER Working Paper Series wp-2019-43, World Institute for Development Economic Research (UNU-WIDER).
    7. 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.
    8. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    9. Juan Blyde & Gonzalo Iberti & Micaela Mussini, 2018. "When does innovation matter for exporting?," Empirical Economics, Springer, vol. 54(4), pages 1653-1671, June.
    10. Ricardo Lopez & Niru Yadav, 2010. "Imports of Intermediate Inputs and Spillover Effects: Evidence from Chilean Plants," Journal of Development Studies, Taylor & Francis Journals, vol. 46(8), pages 1385-1403.
    11. Pil Sun Heo & Duk Hee Lee, 2019. "Evolution of the linkage structure of ICT industry and its role in the economic system: the case of Korea," Information Technology for Development, Taylor & Francis Journals, vol. 25(3), pages 424-454, July.
    12. Lall, Sanjaya & Weiss, John & Zhang, Jinkang, 2006. "The "sophistication" of exports: A new trade measure," World Development, Elsevier, vol. 34(2), pages 222-237, February.
    13. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    14. Willem Thorbecke & Hao-Kai Pai, 2015. "The sophistication of East Asian exports," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(4), pages 658-678, October.
    15. Henderson, Daniel J. & Carroll, Raymond J. & Li, Qi, 2008. "Nonparametric estimation and testing of fixed effects panel data models," Journal of Econometrics, Elsevier, vol. 144(1), pages 257-275, May.
    16. M. V. Posner, 1961. "International Trade And Technical Change," Oxford Economic Papers, Oxford University Press, vol. 13(3), pages 323-341.
    17. Jinqi Su & Ke Su & Shubin Wang, 2021. "Does the Digital Economy Promote Industrial Structural Upgrading?—A Test of Mediating Effects Based on Heterogeneous Technological Innovation," Sustainability, MDPI, vol. 13(18), pages 1-24, September.
    18. Peretto, Pietro F, 2003. "Fiscal Policy and Long-Run Growth in R&D-Based Models with Endogenous Market Structure," Journal of Economic Growth, Springer, vol. 8(3), pages 325-347, September.
    19. Javier López González & Marie-Agnes Jouanjean, 2017. "Digital Trade: Developing a Framework for Analysis," OECD Trade Policy Papers 205, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Changya Di & Decai Tang & Yifan Xu, 2023. "Impact of Digital Economy on the High-Quality Development of China’s Service Trade," Sustainability, MDPI, vol. 15(15), pages 1-19, August.
    2. Zhaozhi Wang & Shoufu Lin & Yang Chen & Oleksii Lyulyov & Tetyana Pimonenko, 2024. "The Digital Economy and Real Economy: The Dynamic Interaction Effect and the Coupling Coordination Degree," Sustainability, MDPI, vol. 16(13), pages 1-20, July.
    3. Danxue Fan & Meiyue Li, 2024. "Digital Economy Development and Green Innovation Efficiency from a Two-Stage Innovation Value Chain Perspective," Sustainability, MDPI, vol. 16(11), pages 1-20, May.
    4. Xiaoqing Wong & Wenhao Kang & Jisu Kim & Yingying Xu & Ankang Wang, 2025. "The Criticality of the Digital Economy in Environmental Sustainability: Fresh Insights from a Wavelet-Based Quantile-on-Quantile Approach," Sustainability, MDPI, vol. 17(2), pages 1-17, January.
    5. Dong Wang & Peiyuan Xu & Bowen An & Yingying Song, 2024. "How does the development of the digital economy in RCEP member countries affect China’s cross-border e-commerce exports?," PLOS ONE, Public Library of Science, vol. 19(12), pages 1-27, December.
    6. Chenggang Wang & Dongxue Yang & Tiansen Liu, 2024. "The Impact of Factor Price Distortions on Export Technology Complexity: Evidence from China," Sustainability, MDPI, vol. 16(16), pages 1-27, August.
    7. Songling Yang & Yafei Tai & Jianing Liu, 2024. "Mechanism Analysis and Path Study of Digital Transformation on Corporate Governance: Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 16(21), pages 1-24, October.
    8. Haiyang Qiu & Xin Li & Long Zhang, 2023. "Influential Effect and Mechanism of Digital Finance on Urban Land Use Efficiency in China," Sustainability, MDPI, vol. 15(20), pages 1-21, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ketan Reddy & Radeef Chundakkadan & Subash Sasidharan, 2021. "Firm innovation and global value chain participation," Small Business Economics, Springer, vol. 57(4), pages 1995-2015, December.
    2. Dong Xuan Nguyen, 2016. "Trade liberalization and export sophistication in Vietnam," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(8), pages 1071-1089, November.
    3. Bernardina Algieri & Antonio Aquino & Marianna Succurro, 2022. "Trade Specialisation and Changing Patterns of Comparative Advantages in Manufactured Goods," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(3), pages 607-667, November.
    4. Qiuqiu Guo & Xiaoyu Ma, 2023. "How Does the Digital Economy Affect Sustainable Urban Development? Empirical Evidence from Chinese Cities," Sustainability, MDPI, vol. 15(5), pages 1-21, February.
    5. Huaxue Zhao & Yu Cheng & Ruijing Zheng, 2022. "Impact of the Digital Economy on PM 2.5 : Experience from the Middle and Lower Reaches of the Yellow River Basin," IJERPH, MDPI, vol. 19(24), pages 1-20, December.
    6. Caihong Yang, 2023. "Digital economy drives regional industrial structure upgrading: Empirical evidence from China’s comprehensive big data pilot zone policy," PLOS ONE, Public Library of Science, vol. 18(12), pages 1-25, December.
    7. Ting Zhu & Xiaqing Chen & Wenwen Zhang & Basil Sharp, 2023. "Analysis of the Spatial–Temporal Evolution of the Digital Economy and Its Impact on the Employment Structure in China from 2001 to 2020," Sustainability, MDPI, vol. 15(12), pages 1-18, June.
    8. Changya Di & Decai Tang & Yifan Xu, 2023. "Impact of Digital Economy on the High-Quality Development of China’s Service Trade," Sustainability, MDPI, vol. 15(15), pages 1-19, August.
    9. Gideon Ndubuisi & Solomon Owusu, 2021. "How important is GVC participation to export upgrading?," The World Economy, Wiley Blackwell, vol. 44(10), pages 2887-2908, October.
    10. Dam, Alje van & Frenken, Koen, 2022. "Variety, complexity and economic development," Research Policy, Elsevier, vol. 51(8).
    11. Sanjib Pohit & Sanjukta Basu, 2012. "High Technology Merchandise Exports: Where does India Stand?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 13(2), pages 183-206, September.
    12. Andre Nassif & Carmem Aparecida Feijo & Eliane Araújo, 2016. "Structural change, catching up and falling behind in the BRICS: A comparative analysis based on trade pattern and Thirlwall’s Law," PSL Quarterly Review, Economia civile, vol. 69(279), pages 373-421.
    13. Richard Baldwin, 2013. "Trade and Industrialization after Globalization's Second Unbundling: How Building and Joining a Supply Chain Are Different and Why It Matters," NBER Chapters, in: Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century, pages 165-212, National Bureau of Economic Research, Inc.
    14. Huiying Zhang & Xiaohui Yang, 2016. "Intellectual Property Rights and Export Sophistication," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-19, October.
    15. Yu Ri Kim, 2019. "Does aid for trade diversify the export structure of recipient countries?," The World Economy, Wiley Blackwell, vol. 42(9), pages 2684-2722, September.
    16. Li, Changqing & Lu, Jian, 2018. "R&D, financing constraints and export green-sophistication in China," China Economic Review, Elsevier, vol. 47(C), pages 234-244.
    17. Colin Davis & Ken-ichi Hashimoto, 2019. "Innovation Offshoring with Fully Endogenous Growth," ISER Discussion Paper 1055, Institute of Social and Economic Research, The University of Osaka.
    18. Seref Saygili & Cengiz Cihan & Cihan Yalcin & Turknur Hamsici, 2010. "Turkiye Imalat Sanayiin Ithalat Yapisi," Working Papers 1002, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    19. Xavier Cirera & Anabel Marin & Ricardo Markwald, 2011. "Explaining the Diversification Path of Exporters in Brazil: How Similar and Sophisticated are New Products?," Working Paper Series 2611, Department of Economics, University of Sussex Business School.
    20. Hartmann, Dominik & Guevara, Miguel R. & Jara-Figueroa, Cristian & Aristarán, Manuel & Hidalgo, César A., 2017. "Linking Economic Complexity, Institutions, and Income Inequality," World Development, Elsevier, vol. 93(C), pages 75-93.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:9081-:d:1163863. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.