Analysis for the Influence of the China Industrial Policies to the Digital Economy

Abstract

The World recent economic debate focuses on how industrial policies can be designed to reflect and pilot the digital economy subject to the ongoing rapidly technological advancement in the world. However the influence of the Chinese industrial Policies has never been studied. The present paper is focusing on evaluating the influence of China's industrial policies on the digital economy during the period from 2010 to 2017 in China. With that regards the simple regression model was used to evaluate the influence of the China industrial policies on the digital economy. Time series data for the study were collected from the World Bank data indicator and the United Nations Report (Digital Economy Report, 2019) during the period from 2010 to 2019 for China. To analyze the influence of the China industrial policies the China industrial policies were represented by the economic openness and stands as the independent variable while the remaining macroeconomic variables (Information Technology GDP, Information technology employment, and Population using the internet) regarded as dependent variables for the study. The findings of the study were in actual fact catching up the attention. The study findings revealed that the relationship between the economic openness and all macroeconomic variables (Information and Technology GDP, and Information and technology employment) is positive and meaningful, except to the population using the internet where findings revealed that the economic openness and the population using internet relationship is negative and meaningless during the period from 2010 to 2017 in China.