The Impact Of Internet Development On The Upgrading Of China’s Industrial Structure

Under the background of the new normal of economic development the operation environment of China’s industry has changed greatly and the difficulties and challenges are more severe.In the consumer side,with the improvement of people’s income level and quality of life the consumption habits and preferences of Chinese residents have evolved into new characteristics with a strong pursuit of convenient customized and personalized consumption.Therefore,the driving force for economic growth has shifted from export and investment to consumption and domestic demand.At the production end,the change of factor resources is also very obvious.With the gradual disappearance of the demographic dividend in China the growth rate of labor force in China shows a downward trend and the labor cost is also higher and higher.The economy has changed from high-speed development to medium and high-speed development and the problems exposed by the industrial operation are more and more serious,such as serious overcapacity、insufficient growth power of emerging industries and the dependence on key areas.The existence of such problems as the problem of population the high cost of business operation and the lack of talents is very unfavorable to the economic development of our country so the key to the current economic development is how to efficiently transform and upgrade the industry.With the continuous improvement of information infrastructure and the continuous breakthrough of Internet technology,the Internet has rapidly infiltrated into all fields of life.Through the transformation and integration of traditional industries a new economic model has been created which has brought great changes to people’s lives.The level of internet development can not only reflect the level of economic development of a country but also gradually become the driving force of industrial transformation and upgrading in China The new power of level.Firstly,this paper introduces the evolution of industrial structure upgrading、Moore’s law 、 Metcalfe’s law of internet development and the long tail theory of Internet development and then analyzes the influence of Internet on industrial structure upgrading from direct driving effect、financial support effect、labor endowment effect,innovation talent effect and other channels.According to China’s specific national conditions and the development of the Internet economy,this paper combs out the advantages and disadvantages of China’s Internet development.In the empirical aspect entropy method isapplied to construct the comprehensive development index of internet development from four aspects of Internet infrastructure,Internet popularity,Internet application level and Internet development potential,and static panel fixed effect model、panel threshold model and medium panel fixed effect model are established with urbanization,trade openness,government intervention,foreign direct investment and marketization level as control variables Regression analysis was carried out with the mediator effect model.The results show that the development of internet development has a significant role in promoting the upgrading of industrial structure and the impact is not obvious in the early stage of Internet development.When the Internet development index exceeds the first threshold and is lower than the second threshold,i.e.between 0.3874 and 1.6482,it has the greatest impact on the upgrading of industrial structure.At the same time,the intermediary effect test shows that the impact of Internet on industrial upgrading is in finance There are intermediary effects in support labor endowment and innovative talents.The proportion of intermediary effect in the total effect is 7.35%、14.79% and 2.77% respectively.Finally,combined with the results of theoretical and empirical analysis corresponding policy suggestions are put forward.