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Digital economy drives regional industrial structure upgrading: Empirical evidence from China’s comprehensive big data pilot zone policy

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  • Caihong Yang

Abstract

With the development of the digital economy, industrial structure upgrading plays an important role in realizing high-quality development. Exploiting the quasi-natural experimental setting provided by the Big Data Comprehensive Pilot Zone (BDCPZ) policy in China in 2016, this study evaluates the impacts of the BDCPZ policies on regional industrial structure upgrading using a combination of propensity score matching and difference-in-differences (PSM-DID) with panel data of 30 regions for the period 2008–2021. The results are as follows: (1) BDCPZ policies significantly promote regional industrial structure upgrading. This finding holds after conducting the placebo test and replacing explained variables. (2) BDCPZ policies enhance upgrading through technological innovation and financial deepening. (3) Heterogeneity analysis shows that the promotional effect of BDCPZ policies on industrial structure upgrading is more obvious in economically developed regions, megacities, and east-central regions; overall, regions with high industrialization benefit more. These findings have important implications: First, they provide new empirical evidence from the perspective of policy evaluation on how the digital economy affects industrial structure upgrading. Second, this study sheds light on the mechanism underlying this relationship, helping us understand how the digital economy can further affect the development of the industrial structure. Third, the policy effect is heterogenous, providing a scientific basis for the government to formulate differentiated implementation policies for different regions. This can help local industrial transformation and upgrading, and economic development in these regions through the implementation of big data and digital technologies.

Suggested Citation

  • 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.
    • Handle: RePEc:plo:pone00:0295609
    DOI: 10.1371/journal.pone.0295609
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    2. Lv, Jingyao & Zhao, Zhongxiu & Ji, Yongsheng, 2025. "Can big data aggregation help businesses save energy and reduce emissions? Quasi-natural experiment in big data comprehensive test," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 89-102.
    3. Li, Xiang & Yue, Shujing, 2025. "Does the government digital attention improve China's digital economy output efficiency: Accelerator or inhibitor," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 607-625.
    4. Zhang, Zhengang & He, Gailei & Lu, Yushu, 2025. "Big data and Sustainability: Exploring the role of data element allocation in enhancing corporate performance," International Review of Economics & Finance, Elsevier, vol. 103(C).
    5. Jing, Li & Tianshu, Quan & Qing, Han, 2025. "Open government data and green economic growth," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 2207-2218.

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