The Convergence between Digital Industrialization and Industrial Digitalization and Export Technology Complexity: Evidence from China

Abstract

The wave of digitalization is driving the restructuring of the global value chain, providing an excellent opportunity for China to leapfrog into the digital era. The convergence between digital industrialization and industrial digitalization (hereinafter referred to as CDIID) is an indicator to measure the sustainability of the digital economy. The main objective of this paper is to measure the level of CDIID in China and verify the impact of CDIID on export technology complexity and its mechanism. The nonparametric stochastic frontier method is used to measure the level of CDIID of each province in China from 2013 to 2019, and the fixed-effect model is used to investigate the impact effect and mechanism of CDIID on export technology complexity. Empirical research finds that the level of CDIID plays a positive role in promoting the export technology complexity, and in the short term, more attention should be paid to the development of industrial digitalization to enhance export technology complexity. The mechanism test results show that CDIID enhances export technology complexity through the channels of industrial structure upgrading and innovation ability improvement. In terms of industrial digitalization driven by digital industrialization, the channel of innovation ability improvement has a significant impact. In terms of the path of industrial digitalization to promote digital industrialization, it has an inhibitory effect on both channels in the short run. This paper provides empirical evidence and a decision-making basis for China to promote the sustainable development of the digital economy and build new advantages in international competition.