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Digital transformation, industrial structure change, and economic growth motivation: An empirical analysis based on manufacturing industry in Yangtze River Delta

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  • Xuefeng Zheng
  • Xiufan Zhang
  • Decheng Fan

Abstract

China is in a critical stage of economic growth mode transformation. The digital transformation of the manufacturing industry may create new impetus and new models for economic growth. Taking the manufacturing industry of 25 prefecture-level cities in the Yangtze River Delta region as the research object, we explore the digital transformation process of the manufacturing industry and verifies its theoretical mechanism of promoting economic growth through the industrial structure. A panel model based on the improved Feder two-sector model and a multiple mediating effect model are established to explore the dynamic mechanism of manufacturing digital transformation to promote economic growth through industrial restructuring. The results show that the digital transformation of the manufacturing industry in the Yangtze River Delta region of China is relatively high, and the speed of digital transformation has been accelerating in recent years. The digital transformation of the manufacturing industry can promote the change in industrial structure and form a new driving force for economic growth. The key is to improve the level of industrial structure and extend the length of the industrial chain. Based on these, we propose measures to promote the transformation and upgrading of industrial structure for the sustainable development of China’s economy.

Suggested Citation

  • Xuefeng Zheng & Xiufan Zhang & Decheng Fan, 2023. "Digital transformation, industrial structure change, and economic growth motivation: An empirical analysis based on manufacturing industry in Yangtze River Delta," PLOS ONE, Public Library of Science, vol. 18(5), pages 1-27, May.
    • Handle: RePEc:plo:pone00:0284803
    DOI: 10.1371/journal.pone.0284803
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