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The Impact of Digital Economy on Industrial Structure Upgrading in Hubei Province

Author

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  • Shuying Huang

    (Zhongnan University of Economics and Law, School of Statistics and Mathematics)

Abstract

As a core province in Central China and a key node of the Yangtze River Economic Belt, Hubei Province faces structural challenges such as lagging transformation of traditional industries and insufficient cultivation of emerging industries. The digital economy has become a core pillar for its industrial structure upgrading. Based on panel data of Hubei Province from 2011 to 2023, this study measures the level of digital economy using the entropy weight method, and explores the impact mechanism between digital economy and industrial structure upgrading through the two-way fixed effects model, multiple mediation effect model, and robustness tests. The results show that: Hubei’s digital economy presents a trend of steady cultivation—accelerated leapfrog growth, while industrial structure upgrading shows characteristics of fluctuating adjustment—sustained rise, with a significant positive correlation between the two; mediation effect analysis indicates that the digital economy can indirectly promote industrial upgrading through three paths: market demand expansion, urbanization agglomeration, and technological innovation improvement; among control variables, government intervention, degree of opening-up, and high-end technical talents all have significant positive effects, while population density has no significant impact. This study clarifies the internal mechanism of the digital economy driving industrial structure upgrading in Hubei, providing a scientific basis for Hubei Province to formulate differentiated policies and strengthen its function as a regional strategic pivot.

Suggested Citation

  • Shuying Huang, 2026. "The Impact of Digital Economy on Industrial Structure Upgrading in Hubei Province," Advances in Economics, Business and Management Research,, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-672-2_10
    DOI: 10.2991/978-94-6239-672-2_10
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