The Impact Study of the Convergence of the Digital Economy and Manufacturing on Manufacturing Performance

Juanjuan Zhang; Weixian Wang

doi:10.6981/FEM.202507_6(7).0009

Authors

Juanjuan Zhang
Weixian Wang

DOI:

https://doi.org/10.6981/FEM.202507_6(7).0009

Keywords:

Digital Economy; Industry Integration; Manufacturing Industry; Industry Performance.

Abstract

Against the backdrop of the rapid development of the digital economy, digital technologies have extensively penetrated and been applied across various industrial sectors, exhibiting a trend of mutual integration. Utilizing data from the China Input-Output Tables published by the OECD, this study computes the forward and reverse integration indicators for the digital economy industry and the manufacturing industry, analyzing the degree of integra-tion between them. Furthermore, employing dynamic panel data models based on data from 2008 to 2018 across 15 sub-sectors of the manufacturing industry, this research employs the Generalized Method of Moments (GMM) for estimation to investigate the impact of forward and reverse integration on manufacturing industry performance. Empirical results suggest that the initial stages of both forward and reverse integration between the digital economy industry and manufacturing may temporarily adversely affect performance, but in the long run, they exhibit positive effects on manufacturing industry performance. This finding provides empir-ical support for a deeper understanding of the relationship between the digital economy and the manufacturing industry.

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