Industrial Upgrading Research Articles

Green-oriented fiscal policy and enterprise green product export: evidence from the energy-saving and emission-reduction fiscal policy

ABSTRACT The theoretical mechanisms and transmission channels that energy-saving and emission-reduction fiscal policy impact enterprise green product export are first explored in this article. Empirical analysis of these mechanisms is conducted using a multi-period difference-in-differences (DID) model. The findings suggest that the policy has a substantial impact on the export of green products by enterprises. Multiple tests, including those for treatment-effect heterogeneity, placebo, all support this conclusion’s robustness. The research also finds the policy have a greater impact on the export of green products for capital goods in areas with strict environmental rules, as well as in large-scale enterprises, private enterprises, coastal enterprises, and non-heavy-pollution industries. The mechanism test demonstrates that the green product export of enterprises is primarily promoted by energy-saving and emission-reduction fiscal policy, which are implemented through the promotion of green technological innovation and urban industrial structure upgrades. Finally, this article further explores whether a combination of public incentives (energy-saving and emission-reduction fiscal policy) and private incentives can promote enterprises’ green product export. The result shows that the combination of private incentives such as reputation benefits and demand incentives with energy-saving and emission-reduction fiscal policy increases the likelihood of enterprises’ green product export.

The Path of AI Technology to Promote Sustainable Development of China’s Cultural Industry: An empirical analysis based on Digital Cultural Communication

Artificial intelligence technology is currently reshaping the global cultural industry profoundly. This study uses Chinese digital cultural products as the cases, and adopts case analysis and phenomenological methods to explore how AI technology can promote the sustainable development of China’s cultural industry through content production, communication innovation and industrial upgrading. The study found that AI has formed a “technology-culture-market” synergy mechanism in the three dimensions of cultural digital protection, global communication and user interactive experience, but faces challenges such as technological ethics, cultural discounts and unequal resource allocation. Finally, a three-element development framework of “policy guidance-technology empowerment-ecological co-construction” is proposed.

Can you have both fish and bear’s paw? The impact of national innovative city pilot policy on the urban–rural income gap

In advancing China’s high‑quality development, the National Innovative City Pilot Policy has exerted a profound influence on the urban–rural income gap. Based on panel data from 280 prefecture‑level and above cities in China for 2006–2018, this study employs a multi‑period difference‑in‑differences (DID) framework to assess the policy’s impact on urban–rural income gap and its heterogeneous effects, and further investigates the underlying mechanisms through industrial‑structure optimization. The findings indicate that (1) the Pilot Policy significantly widens the urban–rural income gap at the prefecture level and above; (2) It intensifies this disparity via two channels—facilitating industrial upgrading while impeding structural rationalization—with partial mediation contributions of 31.71% and 35.13% of the total effect, respectively. This study concludes with policy recommendations for designing a scientifically grounded innovation system, narrowing income gap, and promoting coordinated urban–rural development.

Green Finance for Green Land: Coupling Economic and Ecological Systems Through Financial Innovation

The coupled development of economic and ecological systems is crucial for achieving sustainable growth, with the financial system playing a pivotal adaptive role. Green financial innovation (GFI) is central to enhancing this adaptation. Urban land use eco-efficiency (ULUEE) serves as an effective measure of economic–ecological coupling. Using China’s Green Finance Reform and Innovation Pilot Zones (GFRPZs) as a quasi-natural experiment, this study assesses the impact of GFI on ULUEE, employing panel data from 283 prefecture-level cities (2013–2021). The results show that GFI significantly enhances ULUEE through technological spillovers, strengthened environmental regulation, industrial upgrading, and resource agglomeration. Heterogeneity analyses further reveal that GFI’s positive effects are more pronounced in economically developed regions, cities without legacy heavy-industry reliance, and those with deeper financial development. Additionally, GFI demonstrates cross-regional spillover effects, effectively interacting with other environmental policies. While GFI’s impact is more pronounced in economic growth, its ecological governance improvements are modest. This study provides critical insights for tailored green financial policies aimed at harmonizing economic and ecological objectives.

Digital Economy and Sustainable Development in China: From the Perspective of High-Quality Development of Manufacturing

This study investigates the role of the digital economy (DE) in advancing the high-quality development of manufacturing in China, with a particular focus on the moderating effects of manufacturing agglomeration and digital literacy. Using provincial panel data from 2013 to 2023, we find that the digital economy significantly enhances manufacturing development across three key dimensions: green transformation, innovation, and high-end industrial upgrading. Manufacturing agglomeration strengthens this effect, especially in the Eastern and Western regions, by facilitating digital spillovers and leveraging digital infrastructure. However, in the Central region, the impact of agglomeration is weaker, hindered by fragmented industrial clusters and underdeveloped digital infrastructure. The study also highlights significant regional differences in the moderating effect of digital literacy. In the Eastern region, digital literacy negatively moderates the relationship between DE and manufacturing development due to skill mismatches, while in the Western region, localized concentrations of digital skills have a positive but geographically constrained impact. Temporal analysis reveals a shift in the moderating role of digital literacy, with its negative effect becoming more pronounced after 2018, suggesting a growing need for targeted skill development policies. These findings underscore the importance of regionally tailored strategies to promote digital manufacturing integration, with a focus on sustainable development through digital transformation and green manufacturing practices.

Research on the Prospect and Significance of China’s Scientific and Technological Innovation from the Perspective of New-quality Productivity

This paper deeply explores the prospects and significance of China’s scientific and technological innovation from the perspective of new-quality productivity. By analyzing the connotation, characteristics, and formation factors of new-quality productivity, this paper expounds its close connection with scientific and technological innovation. Combined with the current situation of China’s scientific and technological innovation, the study analyzes the opportunities and challenges faced by China under the development trend of new-quality productivity and looks forward to the future prospects. At the same time, it elaborates on the important significance of scientific and technological innovation for China in terms of economic development, industrial upgrading, and enhancement of international competitiveness, aiming to provide theoretical support and decision-making references for better promoting scientific and technological innovation in the era of new-quality productivity.

Impact of enhancing national autonomous innovation demonstration zones on cities’ efficiency in technological innovation

National independent innovation demonstration zones (NIIDZs) play a crucial role in scientific and technological innovation (STI). However, there have long been disputes regarding their ability to continuously increase urban STI efficiency, the paths through which they generate innovation-driven effects, and their spatial effects. This study uses the panel data of 274 cities in China from 2006 to 2020 and applies various methods including the multiperiod difference-in-differences model, quantile model, and spatial Durbin model to systematically explore the impact of NIIDZs on urban STI efficiency. The research findings are as follows: the positive impact of NIIDZs on urban STI efficiency begins to emerge in the fourth year after their establishment and persists. The spatial effect is distance dependent, suppressing the STI efficiency of surrounding cities within 110 kms while promoting that of areas at a distance between 110 and 410 kms, with the strongest effect occurring at 360 kms. The mechanism analysis shows that NIIDZs affect urban STI efficiency through factor agglomeration, innovation environment optimization, and industrial structure transformation and upgrading. This study provides important policy insights for fully harnessing the innovation-driven effect of NIIDZs to increase urban STI efficiency.

Exploring Digital Economy, Industrial Structure Upgrading, and Regional Green Development in the Five Provinces of Northwest China

This paper takes the five northwestern provinces of China as research objects to explore the intrinsic mechanisms of the digital economy, industrial structure upgrading, and regional green development through empirical analysis. This study reveals that the digital economy plays an indispensable role in the green and high-quality development of the five northwestern provinces. (1) This study investigates the influence of the digital economy on green high-quality development in China’s five northwestern provinces, focusing on the mediating effect of industrial structure upgrading. Using panel data and multiple regression analysis, it demonstrates that the digital economy significantly promotes green development, even when controlling for infrastructure, human capital, and openness. (2) Industrial structure upgrading serves as a critical mediator, transmitting part of this positive effect. Heterogeneity analysis shows that the digital economy’s impact is more pronounced in high-GDP regions, while low-GDP regions remain dependent on conventional drivers like infrastructure. Additionally, human capital and tax burdens exhibit positive effects on green development, whereas R&D intensity has a negligible short-term influence. (3) These findings highlight the importance of region-specific policies integrating digital infrastructure, industrial upgrading, and human capital investment to foster sustainable regional development. This study provides a theoretical basis for deepening digital economic development and promoting green industrial upgrading in northwest China. It suggests that policymakers should account for regional economic disparities and coordinate the deployment of digital infrastructure, industrial transformation, and human capital investment to achieve long-term, coordinated green and high-quality development in the region.

Exploring the spatial spillover effect of industrial structural upgrading on carbon emission efficiency: Evidence from China.

Exploring the spatial spillover effect of industrial structural upgrading on carbon emission efficiency: Evidence from China.

Directions of Development of Belarusian–Chinese Economic Relations (On The Example of the Belarusian–Chinese Industrial Park "Great Stone")

In the context of the growing trend of globalization and the flourishing Belt and Road Initiative, Belarusian - Chinese economic cooperation has become an important aspect of international economic relations. The Belarusian - Chinese Industrial Park "Great Stone" serves as a significant symbol of this cooperation. The aim of this study is to explore the directions of development of Belarusian - Chinese economic relations through the case of the "Great Stone" industrial park. The research method adopted combines in - depth case analysis, data collection from official sources, and interviews with relevant stakeholders. The study concludes that the "Great Stone" industrial park has great potential in promoting trade expansion, technology transfer, and industrial upgrading between the two countries. It also offers valuable insights into the future development directions of Belarusian - Chinese economic relations, which can further strengthen bilateral cooperation and contribute to regional economic development.

From Tech to Green: The Potential of Company Digitalization in Mitigating Urban Air Pollution

ABSTRACTThis study provides robust and significant results that verify the positive effect of company digitalization on local urban air quality. The green impact of digitalization shows clear lag effects, as early‐stage digital development in companies lays the foundation for subsequent improvements in the urban environment. Furthermore, local enterprise digitalization also contributes to reducing pollution spillover to neighboring cities. Mechanism analysis reveals that digital technology promotes green innovation, while also benefiting companies in expanding services and driving urban industrial upgrading. Particularly, the green effects of digitalization are prominent in state‐owned enterprises, the manufacturing sector, and medium‐sized companies. At the urban level, the effects are more pronounced in central regions, megacities, and areas with higher pollution levels. These findings suggest that investing in digital transformation can be a powerful tool for urban planners and industry leaders to achieve sustainable development goals while improving air quality.

The Impact of Tourism Development on Agricultural Economic Transformation and Industrial Structure Upgrading in China-ASEAN Region

This study investigates the complex relationship between tourism development and agricultural economic transformation using panel data from China and ten ASEAN countries (2000–2024). Various econometric methods are employed to establish causal relationships while considering potential endogeneity and spatial dependencies. The findings reveal that for every one percentage point increase in tourism revenue relative to GDP, agricultural labor productivity increases by 2.8%. This indicates that the growth of tourism not only enhances agricultural productivity but also drives the optimization and upgrading of industrial structure, thereby improving overall economic efficiency. The main mechanisms driving this relationship include market integration, resource reallocation, and knowledge transfer, with the indirect impact of knowledge transfer being the most significant (23.7%). The relationship exhibits significant heterogeneity across different levels of economic development, demonstrating an inverted U-shaped pattern, with the most pronounced effects observed in economies with middle to high-income levels. Countries where the agricultural sector accounts for 10–20% of GDP and that have integrated policy environments show the strongest connections between tourism and agriculture during tourism development or integration phases, also promoting industrial structure upgrades. This relationship remains significant in multiple robustness tests. Theoretically, this study provides a clear mechanism by establishing an integrated framework that links tourism, agricultural transformation, and industrial structure upgrading. In practice, it offers evidence-based guidance for policymakers to utilize tourism to promote sustainable agricultural modernization and the advanced and rationalized industrial structure in the China-ASEAN region.

Strategic responses and regional pressures: Malaysia in the U.S.-China semiconductor competition

This article investigates Malaysia’s strategic responses to the intensifying United States (U.S.)–China semiconductor rivalry, where semiconductors have become key geopolitical assets shaping global supply chain realignments. Positioned as a critical node in the back end of the semiconductor supply chain, Malaysia faces mounting pressures to reconcile its technological dependencies with its industrial upgrading ambitions. Drawing on policy documents and industry data, this study develops a three-dimensional analytical framework—techno-geopolitical drivers, structural constraints, and adaptive strategies—to systematically assess how Malaysia navigates this strategic landscape. It addresses three core questions: how U.S. and Chinese semiconductor strategies influence Malaysia’s position, what structural constraints it confronts, and how it adapts to achieve industrial upgrading while preserving autonomy. It finds that Malaysia is advancing three interlinked mechanisms: technological diversification, supply chain adaptation, and institutional balancing. These strategies enable Malaysia to mitigate external shocks, preserve strategic flexibility, and pursue resilient integration into a fragmented global semiconductor order. The findings contribute to debates on middle power agency, supply chain resilience, and strategic technology governance in the Global South.

The actual effect and mechanism of environmental protection taxes on carbon emission reduction: evidence from China

This paper examines the effectiveness of China’s Environmental Protection Tax in reducing regional carbon emissions. Using a difference-in-differences empirical strategy, we analyze panel data from 287 Chinese cities over the period from 2009 to 2021. The results demonstrate that the Environmental Protection Tax has led to a significant reduction of 5.63% in carbon emissions. Mechanism analysis reveals that this reduction is primarily driven by increased investment in green research and development, improved energy efficiency, and industrial upgrading. Further heterogeneity analysis shows that the policy is more effective in eastern regions, Non-old traditional industrial areas, strong government concern areas, and energy-intensive areas. In addition to reducing carbon emissions, the Environmental Protection Tax has also lowered other air pollutants, improved air quality, and enhanced residents’ subjective well-being. These findings provide robust empirical support for the optimization of environmental tax policies to further strengthen China’s transition to a low-carbon economy and advance its sustainable development objectives.

Land use and land cover classification and terrestrial ecosystem carbon storage changes in Vietnam based on Sentinel images

As the world’s second-largest rice exporter, Vietnam’s monitoring of land cover changes and carbon stock estimation is crucial for achieving its carbon neutrality goals amidst deforestation and industrial upgrading. This study developed a new land cover classification method based on the phenological characteristics of rice, using the Google Earth Engine (GEE). The method significantly improves the identification accuracy of farmland by extracting rice phenological bands from Sentinel-1 radar data and Sentinel-2 multispectral data. Carbon stock data from 2015 to 2023 were generated using the InVEST model, and their spatial-temporal variations were analyzed. Additionally, the driving factors behind the changes in carbon stocks in forests, grasslands, and croplands were quantitatively explored using the geographic detector(Geo-Detector). The results show that: (1) The classification method for land cover created in this research exhibits greater accuracy than the European Space Agency (ESA) global land cover map and the Japan Aerospace Exploration Agency (JAXA) forest/non-forest maps from Japan, achieving an overall classification accuracy that surpasses 90%. This method also addresses the issue of low identification accuracy of croplands in traditional methods. (2) From 2015 to 2023, Vietnam’s LULC changes were mainly characterized by decreases in forests and croplands, and increases in grasslands, construction land, bare land, and water bodies. (3) Overall, natural factors have a greater influence on LULC distribution in Vietnam than human activities, with slope being the most influential factor, followed by altitude, temperature, and population. (4) The main factors affecting the reduction of forest and cropland areas were slope, altitude, and population, while the main factors influencing the changes in construction land area were population and the economy. (5) Vietnam’s average carbon stock from 2015 to 2023 was 2.312 billion tons, with an average annual change rate of – 0.63%. Accurate identification of land cover types is a prerequisite for precise carbon stock estimation, and accurate carbon stock estimates are crucial for advancing Vietnam’s carbon neutrality goals.

Digitalization and urban carbon emissions: Unraveling the mechanisms of agglomeration economics.

Digitalization and urban carbon emissions: Unraveling the mechanisms of agglomeration economics.

Configuration effects of enterprise digitization and innovation capability of strategic emerging industries

The development of strategic emerging industries is a necessary condition to achieve industrial transformation and upgrading. And industrial digitalization has given strategic emerging industries a new opportunity to accelerate their development. The aim is to explore the configuration effects of digital transformation and innovation capabilities in strategic emerging industries. This paper using the fuzzy-set qualitative comparative analysis. Seven representative condition variables are selected for configuration analysis from three dimensions: digital transformation awareness, digital transformation capability and digital transformation achievement to conduct configuration analysis. The results show that: (1) There are three configurations to improve the innovation capability of strategic emerging industries, which are digital awareness leads, digital capability facilitation and digital innovation breaks through substitution. (2) The configuration effect of digital transformation on innovation capability of strategic emerging industries in different regions of China is different. To enhance the innovation ability of strategic emerging industries, we should attach importance to the core role of digital innovation awareness.

Industrial convergence, market structure, and consumption upgrading

Industrial convergence, market structure, and consumption upgrading

Does digitalization improve firm-level energy efficiency? Evidence from a quasi-natural experiment in China

Previous research has primarily focused on the influence of digitalization on regional energy efficiency, overlooking the variations in its impact on primary and secondary energy at the firm level. This study leverages a unique and extensive dataset sourced from tax records of Chinese firms to investigate the effects of digitalization on firm energy efficiency, utilizing a quasi-natural experiment revolving around the “Broadband China” policy (BCP). Employing propensity score matching (PSM-DID) to estimate the difference-in-difference model, our analysis reveals that BCP implementation leads to a 10.5% and 11.3% enhancement in coal and oil firm energy efficiency, respectively, while resulting in a 17.2% decrease in electricity firm energy efficiency. Further analysis indicates that BCP influences firm energy efficiency by fostering industrial upgrading and industrial intelligence. Moreover, government intervention magnifies the impact of BCP on firm energy efficiency. Lastly, the paper conducts various heterogeneity analyses and robustness checks. The proposed policies to enhance energy efficiency among Chinese firms are practical and could be applicable to firms in other emerging economies, particularly those experiencing rapid digital advancements.

Impact of global value chain on China's automobile industry upgrading: The mediating effect of technology investment and moderating effect of foreign direct investment

The automobile industry is a cornerstone of China's economy, with its upgrading significantly influencing overall economic growth. Global value chain (GVC), as a framework that connects global markets and production resources, substantially impacts an industry's international competitiveness. This study employs the Malmquist Productivity Index based on the Data Envelopment Analysis (DEA) method to assess China's automobile industry (CAI). Additionally, a system Generalized Method of Moments (GMM) approach is utilized to investigate the influence of GVC on the upgrading process while further examining the mediating and moderating roles of technological innovation and foreign direct investment (FDI). The findings show that GVC has a significant negative effect on upgrading CAI, with technology investment acting as a mediating factor; specifically, GVC hinders industry upgrading by inhibiting technology investment. Furthermore, FDI mitigates the negative impact of GVC on the upgrading of CAI. Based on these findings, this study offers policy implications to promote the upgrading of CAI.