IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i14p6338-d1699120.html

Exploring Digital Economy, Industrial Structure Upgrading, and Regional Green Development in the Five Provinces of Northwest China

Author

Listed:
  • Keyue Chen

    (School of Business Administration, China University of Petroleum-Beijing, 18 Fuxue Road, Changping District, Beijing 102249, China
    School of Business Administration, China University of Petroleum-Beijing at Karamay, No. 355, Anding Road, Karamay 834000, China)

  • Zhengwei Ma

    (School of Business Administration, China University of Petroleum-Beijing, 18 Fuxue Road, Changping District, Beijing 102249, China
    School of Business Administration, China University of Petroleum-Beijing at Karamay, No. 355, Anding Road, Karamay 834000, China)

  • Yuejie Hong

    (School of Business Administration, China University of Petroleum-Beijing at Karamay, No. 355, Anding Road, Karamay 834000, China)

  • Zirui Zhu

    (School of Science Art, China University of Petroleum-Beijing at Karamay, No. 355, Anding Road, Karamay 834000, China)

Abstract

This paper takes the five northwestern provinces of China as research objects to explore the intrinsic mechanisms of the digital economy, industrial structure upgrading, and regional green development through empirical analysis. This study reveals that the digital economy plays an indispensable role in the green and high-quality development of the five northwestern provinces. (1) This study investigates the influence of the digital economy on green high-quality development in China’s five northwestern provinces, focusing on the mediating effect of industrial structure upgrading. Using panel data and multiple regression analysis, it demonstrates that the digital economy significantly promotes green development, even when controlling for infrastructure, human capital, and openness. (2) Industrial structure upgrading serves as a critical mediator, transmitting part of this positive effect. Heterogeneity analysis shows that the digital economy’s impact is more pronounced in high-GDP regions, while low-GDP regions remain dependent on conventional drivers like infrastructure. Additionally, human capital and tax burdens exhibit positive effects on green development, whereas R&D intensity has a negligible short-term influence. (3) These findings highlight the importance of region-specific policies integrating digital infrastructure, industrial upgrading, and human capital investment to foster sustainable regional development. This study provides a theoretical basis for deepening digital economic development and promoting green industrial upgrading in northwest China. It suggests that policymakers should account for regional economic disparities and coordinate the deployment of digital infrastructure, industrial transformation, and human capital investment to achieve long-term, coordinated green and high-quality development in the region.

Suggested Citation

  • Keyue Chen & Zhengwei Ma & Yuejie Hong & Zirui Zhu, 2025. "Exploring Digital Economy, Industrial Structure Upgrading, and Regional Green Development in the Five Provinces of Northwest China," Sustainability, MDPI, vol. 17(14), pages 1-24, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:14:p:6338-:d:1699120
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/14/6338/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/14/6338/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Ozturk, Ilhan & Ullah, Sana & Sohail, Sidra & Sohail, Muhammad Tayyab, 2025. "How do digital government, circular economy, and environmental regulatory stringency affect renewable energy production?," Energy Policy, Elsevier, vol. 203(C).
    3. Jianing Xu & Weidong Li, 2022. "The Impact of the Digital Economy on Innovation: New Evidence from Panel Threshold Model," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    4. Xie, Jueping & Xue, Canyang & Zhou, Jiaxin & Lei, Huaiying, 2025. "Digital economy on high-quality manufacturing development: a spatial spillover and regional coordination perspective," Finance Research Letters, Elsevier, vol. 85(PB).
    5. Wang, Jianlong & Liu, Yong & Wang, Weilong & Wu, Haitao, 2024. "Does artificial intelligence improve enterprise carbon emission performance? Evidence from an intelligent transformation policy in China," Technology in Society, Elsevier, vol. 79(C).
    6. Qi, Limuge & Yang, Lan & Ta, Mier, 2025. "The impact of digital economy on regional resource allocation efficiency: an analysis based on resource flow speed and direction," Finance Research Letters, Elsevier, vol. 82(C).
    7. Chen, Hong & Yu, Zuwei & Hu, Shangui, 2025. "Digital economy, human capital accumulation, and corporate green total factor productivity: Based on strategic emerging industries," International Review of Financial Analysis, Elsevier, vol. 103(C).
    8. Jianing Pang & Yimeng Zhang & Fangyi Jiao, 2023. "The Impact of the Digital Economy on Transformation and Upgrading of Industrial Structure: A Perspective Based on the “Poverty Trap”," Sustainability, MDPI, vol. 15(20), pages 1-20, October.
    9. Yuanqiao Yang & Jianlong Wang & Yong Liu, 2025. "Exploring the Role of Digital Economy in Reducing Natural Resource Dependence: An Empirical Study From Resource‐Based Cities in China," Growth and Change, Wiley Blackwell, vol. 56(2), June.
    10. Ou, Xiaojing & Zhao, Weikang & Zheng, Zhiqiang & Mohiuddin, Muhammad, 2025. "Towards green trade: Digital economy and export quality of green products," Research in International Business and Finance, Elsevier, vol. 75(C).
    11. Wenqi Liao, 2023. "How does the digital economy affect the development of the green economy? Evidence from Chinese cities," PLOS ONE, Public Library of Science, vol. 18(8), pages 1-24, August.
    12. Ye, Lin, 2025. "Digital economy and high-quality agricultural development," International Review of Economics & Finance, Elsevier, vol. 99(C).
    13. Song, Yi & Zhang, Rui & Hao, Yuqing, 2025. "Digital economy, labor force transfer, and high-quality agricultural development," Finance Research Letters, Elsevier, vol. 74(C).
    Full references (including those not matched with items on IDEAS)

    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. Wu, Bei & Ma, Wenxia & Zhao, Qi, 2025. "Digital economy and urban green transformation," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    2. Lingzhang Kong & Jinye Li, 2022. "Digital Economy Development and Green Economic Efficiency: Evidence from Province-Level Empirical Data in China," Sustainability, MDPI, vol. 15(1), pages 1-26, December.
    3. Otarbayeva, Aina B. & Arupov, Akimzhan A. & Abaidullayeva, Madina M. & Dadabayeva, Dardana M. & Khajiyeva, Gulzhakhan U., 2024. "Investment cooperation as a digital economy development method for the Republic of Kazakhstan and the EU," World Development Perspectives, Elsevier, vol. 36(C).
    4. Bo Xu & Rengui Sun & Cunhu Xi & Zhaoping Wang, 2025. "Digital governance and the low-carbon transition: evidence from double machine learning," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    5. Jie, Zhifeng, 2025. "How does international tourism revenue affect economic development? A perspective of human capital," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1546-1568.
    6. Shen, Li & Zhang, Lishu & Jiang, Yuanyuan & Wang, Sen, 2025. "Can the development of digital finance enhance the quality of export products? An analysis based on heterogeneity and moderating effects," Finance Research Letters, Elsevier, vol. 85(PB).
    7. Chaobo Zhou & Xinting Li, 2025. "Impact of Smart Cities on Urban Resilience: The Roles of Land Green Utilization Efficiency and Industrial Structure Transformation," Land, MDPI, vol. 14(7), pages 1-19, June.
    8. Angela Stefania Bergantino & Giulio Fusco & Mario Intini & Gianluca Monturano, 2026. "Digital divide and income inequality: causal evidence from Italian provinces," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 75(1), pages 1-45, March.
    9. Liu, Yiling & Lin, Yu-Cheng, 2025. "Converting knowledge into Productivity: The role of intellectual property empowerment and digital economy in enhancing regional new quality productivity forces - Evidence from China," International Review of Economics & Finance, Elsevier, vol. 102(C).
    10. Huang, YongSheng & Huang, Zexuan, 2025. "Digital finance, green development and high-quality development of the tourism industry," Finance Research Letters, Elsevier, vol. 86(PA).
    11. Yang Lu & Lu Lu Zhou, 2023. "Can digital economy improve employment structure?—Mediating effect based on a spatial Durbin model," PLOS ONE, Public Library of Science, vol. 18(11), pages 1-22, November.
    12. Luo, Hanlin & Chen, Lusi & Xu, Xin, 2025. "How the disclosure of government public data stimulates corporate green transitions," International Review of Economics & Finance, Elsevier, vol. 103(C).
    13. Chin, Min Yee & Qin, Yuting & Hoy, Zheng Xuan & Farooque, Aitazaz Ahsan & Wong, Keng Yinn & Mong, Guo Ren & Tan, Jian Ping & Woon, Kok Sin, 2024. "Assessing carbon budgets and reduction pathways in different income levels with neural network forecasting," Energy, Elsevier, vol. 305(C).
    14. Shanxin Tao & Qin Wang & Tingting Zhu, 2025. "The Role of E-Commerce in Promoting Sustainable Local Employment in Rural Areas: Evidence from China," Sustainability, MDPI, vol. 17(12), pages 1-23, June.
    15. Liang, Min & Chen, Hongmei, 2025. "Digital economy development, regional openness, and high-quality foreign trade," Finance Research Letters, Elsevier, vol. 81(C).
    16. Liu, Yongtao & Li, Ruofan & Wu, Guanzheng, 2025. "How does national audit affect enterprises' operating efficiency?," Finance Research Letters, Elsevier, vol. 85(PC).
    17. Liu, Yang & Qian, Qi & Wang, Yue & Zhang, Honghao, 2024. "Spatial differentiation and driving factors of scientific and technological innovation efficiency under the background of the digital economy," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 208-220.
    18. Shao, Hanhua & Wang, Yaning & Wen, Huwei, 2024. "Investigating the carbon curse of natural resource dependence: A carbon trading scheme," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 769-783.
    19. Wei Li & Hui Wang & Lu Zhang & Runchen Liu, 2023. "Digital inclusive finance, consumer consumption and high-quality economic development," PLOS ONE, Public Library of Science, vol. 18(8), pages 1-22, August.
    20. Yaping Zhu & Qingwei Xu & Chutong Hao & Shuaishuai Geng & Bingjun Li, 2025. "Synergistic Evolution or Competitive Disruption? Analysing the Dynamic Interaction Between Digital and Real Economies in Henan, China, Based on Panel Data," Data, MDPI, vol. 10(8), pages 1-37, August.

    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:17:y:2025:i:14:p:6338-:d:1699120. 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.