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

Jiazhan Gao (), Guihong Hua and Baofeng Huo
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Jiazhan Gao: Nanjing Normal University
Guihong Hua: Nanjing Normal University
Baofeng Huo: Zhejiang University

Journal of the Knowledge Economy, 2025, vol. 16, issue 3, No 36, 12047 pages

Abstract: 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.

Keywords: Digital technology; High-quality economic development; Green innovation; Optimal allocation of factors; Threshold effect (search for similar items in EconPapers)
JEL-codes: B23 C23 E24 L16 O33 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02355-4

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