Abstract
Manufacturing is one of the drivers of China’s growth, realizing structural upgrading is vital to achieve high-quality economic development during periods of economic policy uncertainty. Based on firm-level and province-level panel data from 1997 to 2018, this paper used a fixed effect panel data model and panel quantile regression model to investigate the effect of economic policy uncertainty on structural upgrading in manufacturing. The findings indicate that the effect of economic policy uncertainty on structural upgrading in manufacturing is significantly positive and great in regions at advanced stages of manufacturing structure. The discussion about the results suggests that the mechanism of economic policy uncertainty affecting structural upgrading in manufacturing operates through pushing the manufacturing industry to implement service transformation strategies along with vertical integration.
Highlights
Discrete Dynamics in Nature and Society yet few have investigated the correlation between economic policy uncertainty and structural upgrading in manufacturing as well as its effect mechanism. is work makes realistic contributions that could facilitate the development of high-quality Chinese manufacturing, adding to the literature
Column 1 estimates the basic impact of economic policy uncertainty on manufacturing structural upgrading while controlling for the fixed effects of province and year. e coefficient of EPU is 0.096 and significantly positive, indicating that the manufacturing structure will be upgraded in times of high economic policy uncertainty
All our results show that the manufacturing structure would improve during periods of high economic policy uncertainty
Summary
Discrete Dynamics in Nature and Society yet few have investigated the correlation between economic policy uncertainty and structural upgrading in manufacturing as well as its effect mechanism. is work makes realistic contributions that could facilitate the development of high-quality Chinese manufacturing, adding to the literature. Discrete Dynamics in Nature and Society yet few have investigated the correlation between economic policy uncertainty and structural upgrading in manufacturing as well as its effect mechanism. Is work makes realistic contributions that could facilitate the development of high-quality Chinese manufacturing, adding to the literature. The effect of economic policy uncertainty on manufacturing structural upgrade as well as the effect mechanism itself were investigated. We adopted a panel quantile regression model that provided robust results and examined the heterogeneous problems linking economic policy uncertainty to manufacturing structural upgrading. Ird, we empirically analysed the effect mechanism of economic policy uncertainty imposed on manufacturing structural upgrading through the microdatabase and manually collected firm-level data. We dissected the transmitting route of the effect, which enriches research on economic policy uncertainty, and clarifies the factors of manufacturing structural upgrading. E rest of this manuscript is organized as follows: Section 2 presents the literature review, Section 3 presents the theoretical analysis, Section 4 describes the methodologies and data used, Section 5 presents the empirical results, and the last section presents conclusions and suggestions
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