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

Zongwu Cai, Muxuan Sun, Jing Yuan and Luping Zhang
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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

No 202617, WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS from University of Kansas, Department of Economics

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.

Keywords: Artificial Intelligence; Gig Economy; Industrial Structure Upgrading; Regional Heterogeneity; Mediating Effect (search for similar items in EconPapers)
JEL-codes: C33 O14 O33 R11 (search for similar items in EconPapers)
Date: 2026-09, Revised 2026-09
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