Exploring Digital Economy, Industrial Structure Upgrading, and Regional Green Development in the Five Provinces of Northwest China

Keyue Chen, Zhengwei Ma (), Yuejie Hong and Zirui Zhu
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Keyue Chen: School of Business Administration, China University of Petroleum-Beijing, 18 Fuxue Road, Changping District, Beijing 102249, China
Zhengwei Ma: School of Business Administration, China University of Petroleum-Beijing, 18 Fuxue Road, Changping District, Beijing 102249, China
Yuejie Hong: School of Business Administration, China University of Petroleum-Beijing at Karamay, No. 355, Anding Road, Karamay 834000, China
Zirui Zhu: School of Science Art, China University of Petroleum-Beijing at Karamay, No. 355, Anding Road, Karamay 834000, China

Sustainability, 2025, vol. 17, issue 14, 1-24

Abstract: This paper takes the five northwestern provinces of China as research objects to explore the intrinsic mechanisms of the digital economy, industrial structure upgrading, and regional green development through empirical analysis. This study reveals that the digital economy plays an indispensable role in the green and high-quality development of the five northwestern provinces. (1) This study investigates the influence of the digital economy on green high-quality development in China’s five northwestern provinces, focusing on the mediating effect of industrial structure upgrading. Using panel data and multiple regression analysis, it demonstrates that the digital economy significantly promotes green development, even when controlling for infrastructure, human capital, and openness. (2) Industrial structure upgrading serves as a critical mediator, transmitting part of this positive effect. Heterogeneity analysis shows that the digital economy’s impact is more pronounced in high-GDP regions, while low-GDP regions remain dependent on conventional drivers like infrastructure. Additionally, human capital and tax burdens exhibit positive effects on green development, whereas R&D intensity has a negligible short-term influence. (3) These findings highlight the importance of region-specific policies integrating digital infrastructure, industrial upgrading, and human capital investment to foster sustainable regional development. This study provides a theoretical basis for deepening digital economic development and promoting green industrial upgrading in northwest China. It suggests that policymakers should account for regional economic disparities and coordinate the deployment of digital infrastructure, industrial transformation, and human capital investment to achieve long-term, coordinated green and high-quality development in the region.

Keywords: digital economy; industrial structure upgrading; regional green development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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