HARNESSING THE TRANSFORMATIVE POTENTIAL OF THE DIGITAL ECONOMY FOR HIGH-QUALITY GROWTH: EVIDENCE FROM CHINA
Keywords:
Digital economy, New quality productivity, Green innovation, Machine learning, Threshold effectAbstract
This study investigates the impact of the digital economy on new quality productivity in China from a machine learning perspective. Employing panel data from 30 Chinese provinces spanning 2012-2021, the research utilizes various econometric and machine learning techniques, including fixed effects models, generalized method of moments, random forest, mediation analysis, and threshold regression. The findings reveal a robust positive relationship between digital economy development and new quality productivity, with green innovation playing a crucial mediating role. The random forest model uncovers a nonlinear relationship, where the marginal contribution of the digital economy to productivity exhibits an inverted U-shaped pattern. Furthermore, the threshold regression analysis highlights the moderating effect of innovation, with the productivity-enhancing impact of the digital economy amplified at higher levels of innovation. These results underscore the transformative potential of digital technologies in driving high-quality economic growth, while emphasizing the importance of fostering green innovation and an enabling innovation ecosystem. The study offers valuable insights for policymakers, advocating for a holistic, innovation-centric approach to harnessing the digital economy as a catalyst for sustainable development.References
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