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Digital Technology, Green Innovation, and High-Quality Economic Development: Mechanism Analysis and Empirical Evidence

Author

Listed:
  • Jiazhan Gao

    (Nanjing Normal University
    Jiangsu Normal University)

  • Guihong Hua

    (Nanjing Normal University)

  • Baofeng Huo

    (Zhejiang University)

Abstract

Digital technology (DT) represents a new impetus for high-quality economic development (HQD). This research analyzes panel data spanning from 2011 to 2020 across 278 prefecture-level and above cities in China. The empirical investigation is conducted using fixed effects models and threshold models to explore how DT influences HQD. The findings elucidate several critical insights: DT significantly contributes to the enhancement of economic quality, a conclusion that remains robust after a series of rigorous robustness checks. The influence of DT on HQD varies across different dimensions, with the impact of digital infrastructure being the most significant, whereas the effect of DT innovation is comparatively weaker. Heterogeneity analysis indicates that in cities in the eastern region, the promotional role of DT is more pronounced, and the increase in per capita education levels and investment in physical capital further amplifies this effect. Mechanism analysis reveals that optimizing factor allocation, green innovation, and entrepreneurial vitality play pivotal roles in the process of DT facilitating HQD. We have identified single thresholds for industrial structure transformation and upgrading, as well as green innovation, through threshold model analysis. This study proposes an analytical framework that provides policy guidance for exploring effective pathways to leverage DT in promoting China’s HQD.

Suggested Citation

  • Jiazhan Gao & Guihong Hua & Baofeng Huo, 2025. "Digital Technology, Green Innovation, and High-Quality Economic Development: Mechanism Analysis and Empirical Evidence," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 12011-12047, September.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:3:d:10.1007_s13132-024-02355-4
    DOI: 10.1007/s13132-024-02355-4
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    JEL classification:

    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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