ASSESSING THE SPATIAL EFFECT OF DIGITAL INFRASTRUCTURE INVESTMENT ON THE GREEN DEVELOPMENT OF THE MANUFACTURING SECTOR IN CHINA

The Chinese government established the objectives of achieving "carbon peaking" by 2030 and reaching "carbon neutrality" by 2060.Digitization of the manufacturing sector is an important means of reducing carbon emissions, and accelerating the construction of digital infrastructure is an important impetus to improve resource allocation efficiency.Using panel data from 30 provinces in China during the research period from 2007 to 2021, this research analyzes the spatial spillover effect of digital infrastructure investment on the green development of the manufacturing sector from the perspective of its digital transformation within the sector.The results indicate that digital infrastructure investment fosters green development within the local manufacturing sector, and also significantly enhances the green development in neighboring regions through a spatial spillover effect, which exhibits notable geographical boundaries.Further analysis reveals that digital infrastructure investment primarily promotes green development by facilitating technological progress, yet it may also inhibit green development by widening the technology gap.