经济学院知识库

Abstract：In the 1960s, Baumol believed that the increase in the proportion of services in the economy was the main manifestation of the formation of "Baumol’s disease". At present, China has entered the era of service economy, and the "Baumol’s disease" characterized by declining efficiency and slowing growth rate is gradually emerging. Combined with the literature analysis, the overall low labor productivity of the service industry and the inadequate development of the manufacturing industry are or the root cause of the "Baumol’s disease" in China. Some studies have studied the influence mechanism of digital technology on overcoming "Baumol’s disease" from the perspective of single industry of improving the efficiency of service industry. However, in reality, the service industry and manufacturing industry are closely related, and even show the trend of integrated development, which provides a new idea for overcoming "Baumol’s disease". Combining the reality of China, this paper puts forward digital technology assigned to services and manufacturing, and promote the development of two industries to overcome the integration of "Baumol’s disease" theory idea, by building two department Schumpeter endogenous growth dynamic equilibrium model, explore digital technology both services and manufacturing to overcome the mechanism of "Baumol’s disease".To this end, this paper using 2011~2019,286 cities in China panel data, with the help of global

entropy method to measure the city digital technology development level, then build the level of digital technology development level affect the service labor productivity and the level of labor division in the manufacturing industry of empirical model, trying to prove that digital technology can overcome from two ways to "Baumol's disease" . The study found that, first, the development of digital technology can effectively improve the labor productivity of the service industry, and produce "Deepening effect of division" to improve the level of division of labor in the manufacturing industry, thus overcoming the "Baumol's disease".Second, the "Digital divide" at the city level causes spatial heterogeneity in the path to overcome "Baumol's disease". The service industry in the underdeveloped cities with digital technology is most obviously affected by digital technology, and the "Deepening effect of division" in the manufacturing industry is significant, and the effect of overcoming the "Baumol's disease" is the best;the labor productivity of the service industry in the cities with developed digital technology can be effectively improved, but there is a "Crowding-out effect of division" in the manufacturing industry that is obvious, so it needs to pay more attention to the impact of the "Structural damage" caused by the manufacturing industry when solving the "Baumol's disease". The main conclusions of this paper still hold after using the instrumental variable method, and a series of robust tests. After constructing the mediation

effect model to test the theoretical mechanism of digital technology to overcome the "Baumol's disease" , the research conclusion is highly consistent with the theoretical conception, which proves the rationality of the conclusion of this paper.

The possible marginal contribution of this paper mainly reflects the following three points: First, we describes the mutual promotion mechanism of digital technology to overcome the "Baumol's disease": on the one hand, digital technology enables "Stagnant sector" (Service) to change the inherent attributes of traditional service industry and improve the technological progress rate and labor productivity; on the other hand, the "Deepening effect of division" of digital technology enables "Progressive sector" (Manufacturing), which not only promotes the efficiency of "Producer service", but also contributes to the transformation and upgrading of the manufacturing industry itself. In this paper, Schumpeter endogenous growth model, and introduce digital technology into the model, reveal the internal mechanism of digital technology to overcome "Baumol's disease", which is an important expansion of the existing theory. Second, based on the panel data of Chinese cities, this paper discusses the effective ways to govern "Baumol's disease" in China under the background of "Digital divide" from a spatial perspective, providing empirical evidence for deeply exploring how digital technology can scientifically and effectively