DIGITAL ECONOMY AND REGIONAL INDUSTRIAL UPGRADING UNDER NATIONAL INDUSTRIAL TRANSFER POLICIES

MA Li-li, GU Yu

HUMAN GEOGRAPHY ›› 2026, Vol. 41 ›› Issue (5) : 64-74.

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HUMAN GEOGRAPHY ›› 2026, Vol. 41 ›› Issue (5) : 64-74. DOI: 10.13959/j.issn.1003-2398.2026.05.007
ECONOMY

DIGITAL ECONOMY AND REGIONAL INDUSTRIAL UPGRADING UNDER NATIONAL INDUSTRIAL TRANSFER POLICIES

  • MA Li-li, GU Yu
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Abstract

Evaluating how the digital economy impacts regional industrial upgrading under policy interventions is crucial for optimizing spatial productivity layouts. Treating the establishment of National Industrial Transfer Demonstration Zones as a quasi-natural experiment, this paper uses panel data from Chinese prefecture-level cities from 2001 to 2024. We employ Staggered Difference-in-Differences, Panel Threshold, and Spatial Durbin models to examine the combined impacts, underlying mechanisms, and spatial dynamics. The main findings are as follows: 1) The policy overlap with the digital economy triggers resource competition and a substitution effect in the short term. This leads to a temporary structural adjustment period, which is particularly pronounced in old industrial bases and regions with weak digital infrastructure. 2) Factor spatial misallocation, especially in labor, serves as the primary bottleneck. Incumbent firms strategically cut back on substantive green R&D for survival, creating a masking effect that temporarily cushions immediate cost pressures. 3) The empowering effect of the digital economy follows a U-shaped non-linear threshold pattern. Synergistic dividends emerge only after crossing a critical threshold. Moreover, demonstration zone policies exert a siphon effect on neighboring areas, whereas digital networks help mitigate administrative barriers and spatial fragmentation.

Key words

digital economy / industrial transfer demonstration zones / factor spatial misallocation / industrial structure upgrading / threshold effect

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MA Li-li, GU Yu. DIGITAL ECONOMY AND REGIONAL INDUSTRIAL UPGRADING UNDER NATIONAL INDUSTRIAL TRANSFER POLICIES[J]. HUMAN GEOGRAPHY. 2026, 41(5): 64-74 https://doi.org/10.13959/j.issn.1003-2398.2026.05.007

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