Research on the impact of Digital Economy Development on The Integration of The Two Industries

Abstract

Based on data from 2010 to 2021 in 30 provinces of China, comprehensive evaluation systems for digital economy development, manufacturing, and service industry integration were constructed. Using a two-way fixed effects model with individual and time dimensions, empirical analysis conducted the impact of digital economy development on the integration of the two industries in each province. Additionally, a panel threshold model was employed to analyze the nonlinear relationship between digital economy development and the integration of the industries. The research findings indicate a significant promoting effect of digital economy development on the integration of the two industries. Robustness tests confirm the stability of the empirical results. In terms of heterogeneity, digital economy development in various regions significantly promotes the integration of the two industries, with the promotion effect in the central and western regions surpassing that in the eastern regions, and the optimal effect in regions with a moderate level of industrialization. Nonlinear reveals the evident nonlinear characteristics of the impact of digital economy on the integration of the two industries, with different effects at different stages of digital economy development. Based on these findings, policy recommendations are proposed, emphasizing the vigorous promotion of digital economy support for the integration of the two industries and the cultivation of digital talent.