Theoretical Mechanisms and Empirical Tests of Structural Upgrading of Service Industry Driven by Digital Economy

Digital economy is a new driving force for upgrading the structure of service industry and a new engine for optimising the structure of service industry. This paper selects the panel data of 29 provinces in China from 2014 to 2022, and analyses the relationship between digital economy, scientific and technological innovation, and the structural upgrading of the service industry from the theoretical and empirical perspectives. The results of the study show that there is a correlation that exists between the digital economy and the structural improvement of the service sector, and that the digital economy indirectly contributes to the structural improvement of the service sector by promoting scientific and technological innovation. This means that, to speed up the construction of digital, promote scientific and technological innovation ability, is of great significance to promote the service industry structure upgrade.