The effects and mechanisms of digital economy on manufacturing high-quality development: an empirical study based on 207 prefecture-level and above cities in China

Weili Xie, Xu Dong and Qifan Zhang

Applied Economics, 2025, vol. 57, issue 13, 1434-1452

Abstract: The digital economy (DE) has become a crucial catalyst for the high-quality development of China’s economy by transforming the manufacturing industry. In this paper, we first measured the high-quality development index of manufacturing and the level of DE in 207 prefecture-level and above cities in China from 2011 to 2021, and subsequently investigated the effects and mechanisms of DE on manufacturing high-quality development (MHQD) with the help of panel two-way fixed-effects model, moderating effects model, mediating effects model. The main findings are as follows. (1) DE significantly contributes to MHQD, and the conclusion still holds after a series of endogeneity treatments and robustness tests. (2) The driving effects of DE on MHQD are more significant in coastal cities, large and medium-sized cities, and southern cities. (3) Fiscal expenditure on science and technology (FEST) can strengthen the positive effect of DE on MHQD, while talent agglomeration (TA) is an important transmission mechanism for DE to empower MHQD. Our study could provide useful policy implications for better exploiting the driving effect of DE on MHQD.

Date: 2025
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DOI: 10.1080/00036846.2024.2312397

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