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AI Empowerment and Gig Economy: Impact on China's Industrial Structure Upgrading

Author

Listed:
  • Zongwu Cai

    (Department of Economics, The University of Kansas, Lawrence, KS 66045, USA)

  • Muxuan Sun

    (School of Statistics, Shandong Technology and Business University, Yantai, Shandong 264005, China)

  • Jing Yuan

    (School of Statistics, Shandong Technology and Business University, Yantai, Shandong 264005, China)

  • Luping Zhang

    (School of Statistics, Shandong Technology and Business University, Yantai, Shandong 264005, China)

Abstract

This paper integrates the theory of industrial structure evolution, factor allocation theory, and digital platform employment theory to construct a regional general equilibrium model encompassing both industrial and service sectors. It systematically delineates the transmission pathways through which artificial intelligence (AI) and the gig economy affect the transformation and upgrading of industrial structures. Utilizing panel data from 30 provinces in China spanning the period 2014 to 2024, we construct comprehensive indices for AI and the gig economy to systematically examine their impacts on industrial structure upgrading. Our empirical findings reveal three key insights: First, AI and the gig economy significantly promote the upgrading of industrial structures. Second, the impact exhibits substantial regional heterogeneity. Specifically, the promotion effect is significant in western China, insignificant in central China, and exhibits a marginally negative effect in eastern China. Third, both the employment structure and the level of technological innovation serve as full mediators in this process, with technological innovation acting as the core pathway through which the gig economy empowers industrial advancement.

Suggested Citation

  • Zongwu Cai & Muxuan Sun & Jing Yuan & Luping Zhang, 2026. "AI Empowerment and Gig Economy: Impact on China's Industrial Structure Upgrading," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 202617, University of Kansas, Department of Economics, revised Sep 2026.
    • Handle: RePEc:kan:wpaper:202617
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    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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