Can the Low-Altitude Economy Pilot Policy Promote the Upgrading of Urban Industrial Structure?

Heng Luo; Songyan Zhang; Canjie Cheng

doi:10.54097/4mx5s349

Authors

Heng Luo
Songyan Zhang
Canjie Cheng

DOI:

https://doi.org/10.54097/4mx5s349

Keywords:

Low-Altitude Economy, Industrial Upgrading, Difference-in-Differences Method, Resource Allocation Efficiency, Regional Heterogeneity

Abstract

The low-altitude economy serves as a vital engine for cultivating new quality productive forces. Based on panel data covering 291 prefecture-level cities in China from 2017 to 2023, this study utilizes the introduction of national-level planning in 2021 as a quasi-natural experiment to empirically examine the impact of low-altitude economic policies on urban industrial upgrading using a Difference-in-Differences (DID) approach. The findings indicate that these policies significantly promote industrial upgrading in pilot cities, a conclusion that remains robust after addressing endogeneity via the instrumental variable (IV) method and conducting a series of robustness checks. Regarding the underlying mechanisms, the policy exerts its influence primarily by improving resource allocation efficiency rather than through technological innovation. Heterogeneity analysis further reveals that the promotional effect is more pronounced in the central and western regions compared to the eastern region. This research provides micro-level evidence for evaluating the macro-economic effects of the low-altitude economy.

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