WORLD EDUCATION CONNECT MULTIDISCIPLINARY E-PUBLICATION
Vol. V Issue IX (September 2025)
International Circulation
This is an open-access, peer-reviewed, and refereed international publication in online & printed versions that features research papers, abstracts, theses, dissertations, and journals. It is registered to the ISSN National Center of the Philippines, and ISSN International Center, the Global Index for Continuing Resources with ISSN (Online) 2799-0842 and ISSN (Print) 2799-130X.
World Education Connect Multidisciplinary e-Publication, Vol. V, Issue IX (September 2025), pp.70-84
Abstract
With the global economy entering the "digital era", digital technology innovation—driven by artificial intelligence (AI), big data, cloud computing, and the Internet of Things (IoT)—has emerged as a pivotal engine reshaping economic growth models. This study aims to systematically explore the multi-path impact mechanisms of digital technology innovation on economic growth and validate these mechanisms through empirical analysis. Based on a theoretical framework of "factor allocation optimization → industrial structure upgrading → total factor productivity (TFP) improvement", we first clarify the connotation and characteristics of digital technology innovation, then construct a theoretical model to explain its role in economic growth. For the empirical part, we use panel data from 30 Chinese provinces (2013–2022), with a digital technology innovation index (constructed via the entropy weight method) as the core explanatory variable and real GDP growth rate as the explained variable. Control variables such as human capital, physical capital investment, and government support are also included. Regression results show that: (1) Digital technology innovation exerts a significant positive impact on economic growth, with a marginal effect of 0.32 (a 1% increase in the innovation index boosts growth by 0.32% on average); (2) Among the three transmission paths, "promoting industrial structure upgrading" has the strongest effect, followed by "optimizing factor allocation efficiency"; (3) Regional heterogeneity exists: the driving effect is more pronounced in eastern China than in central and western regions. Finally, we propose policies such as strengthening digital infrastructure in underdeveloped regions and promoting digital integration with traditional industries to leverage digital innovation for high-quality economic growth.
Keywords: Digital Technology Innovation; Economic Growth; Impact Mechanism; Factor Allocation; Industrial Upgrading; Total Factor Productivity
