How Digitalization Impacts the High-Quality Development of the Manufacturing Industry: Evidence from China

Xinfeng Chang, Kaisheng Fu () and Momoh Conteh
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Xinfeng Chang: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
Kaisheng Fu: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
Momoh Conteh: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China

Sustainability, 2025, vol. 17, issue 12, 1-27

Abstract: The advancement of digital technology is driving high-quality and sustainable development in China’s manufacturing sector. This study investigates the role of digitalization in this transformation, using provincial panel data from China spanning 2011 to 2022. A comprehensive theoretical framework is developed to examine both the direct effects of digitalization and its indirect pathways through innovation factor mobility and industrial structure upgrading. The results show that digitalization significantly enhances high-quality manufacturing development, supported by robust empirical evidence. Mechanism analysis confirms that digitalization accelerates innovation diffusion and structural optimization, promoting sustainable industrial transformation. Heterogeneity analysis reveals stronger effects in central and western regions, and in areas with lower economic development and human capital levels. The findings provide valuable insights for aligning digitalization strategies with sustainable development objectives, particularly SDG 9 (Industry, Innovation, and Infrastructure) and SDG 12 (Responsible Consumption and Production). While grounded in the Chinese context, this study offers lessons for other emerging economies pursuing sustainable industrial modernization.

Keywords: digitalization; manufacturing industry; high-quality development; innovation factor flow; industrial structure upgrading (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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