How to Achieve Balance and Synergy between "New Infrastructure" and Traditional Infrastructure?

Empirical Evidence from China’s Manufacturing Sector

Abstract

With the rapid global development of the digital economy, "new infrastructure", as a critical engine for driving high-quality economic development, is gradually becoming a key driver for the transformation and upgrading of China’s manufacturing sector. Meanwhile, the foundational role of traditional infrastructure in supporting manufacturing remains irreplaceable. How to achieve balance and synergy between the two has emerged as a pivotal issue in policymaking and academic research. Based on provincial panel data, this study employs the Generalized Method of Moments (GMM) model to empirically examine the heterogeneous effects of traditional infrastructure and "new infrastructure" information infrastructure on output growth across multiple industries in China. The results reveal significant differences in the roles of traditional infrastructure and "new infrastructure" across industries: In high-tech manufacturing industries, both substitution and synergistic effects coexist; in mid-tech manufacturing industries, both generally exhibit significant positive impacts on output growth; whereas in low-tech manufacturing and heavy industries, traditional infrastructure plays a more dominant role, while "new infrastructure" demonstrates polarized or even negative effects. Accordingly, this paper proposes that regions should formulate differentiated policy frameworks tailored to local conditions to achieve coordinated development between "new infrastructure" and traditional infrastructure. The findings provide theoretical foundations and policy insights for optimizing infrastructure resource allocation and advancing high-quality economic development in China.