1. Introduction
Gansu Province is located in the inland northwest of China, covering an area of approximately 425,900 square kilometres (
Wei et al., 2024). In 2023, its regional gross domestic product (GDP) was around CNY 1.23 trillion, with a per capita GDP of about CNY 47,900 (
Liao et al., 2024). The province continues to face constraints, such as relatively weak infrastructure, outflows of skilled labour and a narrow industrial structure (
G. Wang et al., 2022). In recent years, as China’s modernisation has progressed, digital technologies (e.g., big data, cloud computing and artificial intelligence) have been increasingly integrated into traditional industries, injecting new vitality into conventional sectors and becoming an important driver of high-quality regional development (
Y. Lu, 2022). As a key province in western China, Gansu has maintained steady economic growth; the provincial government has emphasised digitalisation and the integration of industries with digital technologies to improve product and service quality. In 2023, regional GDP reached CNY 1.23 trillion, representing 6.4% growth over 2022; however, there remains substantial room for improvement relative to many other provinces.
The logistics capacity and capability of a region strongly influence its economic development level (
Sheffi, 2012;
C. Wang & Zhang, 2015). Gansu has prioritised modern logistics: the provincial “14th Five-Year Plan” for logistics was issued in 2022; in 2023, projects such as the Gansu (Lanzhou) International Land Port multimodal information system and warehouse logistics construction commenced; in 2024, the high-speed railway from Lanzhou to Wuwei opened, further strengthening the rail network. These initiatives are important for regional economic and social development and for integration into national strategies. In the digital era, the transformation of traditional logistics towards intelligent, data-driven systems has become a key lever for promoting regional development (
Y. Li et al., 2018).
At the same time, several frictions remain. Although the number of logistics firms is large, most are small-scale; overall services remain insufficiently professional and intelligent, with service homogenisation, low operational efficiency and weak effectiveness commonly observed (
Zhao, 2015). These issues restrict the economic driving force of Gansu’s logistics industry (
Wen & Yuan, 2024). How to overcome these limitations, seize opportunities brought by the digital economy and transform traditional logistics into a modern, high-quality logistics system is, therefore, a pertinent question. Existing studies primarily describe Gansu’s digital economy or the status of its logistics industry; few examine their interaction within a unified framework. Addressing this gap, the present study combines theoretical analysis and empirical evidence to examine the development of Gansu’s logistics industry in the era of the digital economy.
International and domestic evidence suggests that the digital economy is a crucial driver of the transformation and upgrading of traditional industries, including logistics. Conceptually, the integration of digital technologies enhances logistics efficiency and supports the rise of intelligent logistics (
Xu et al., 2021). With the advancement of the digital economy, conventional logistics is increasingly evolving towards intelligent and digital systems (
Huang & Li, 2023), leading not only to higher efficiency, but also to significant cost reductions (
Rashidi, 2019). Gansu Province is currently building a national hub node for the integrated computing network and promoting big-data centres to facilitate digital economy development; however, empirical evidence on how the digital economy relates to logistics development in Gansu remains limited (
Y. Guo & Ding, 2022). In this study, “modern logistics production” (MLP) is measured by the official value added of transportation, warehousing, and postal services, which provides a consistent provincial-year indicator, but does not capture all logistics frictions (e.g., firm counts or freight intensity). Accordingly, the empirical results are interpreted as associations in log levels rather than causal effects; formal causal identification is beyond the scope of this paper and is left to future research using instrumental variables or panel designs.
This study contributes to the literature in three ways. First, it provides a province-level, long-horizon assessment (2009–2023) of the digital economy and logistics development in an under-represented western region, complementing studies that focus on coastal or more advanced provinces. Second, it implements a dual multi-criteria framework—entropy-weighted TOPSIS and a modified SPOTIS—under a unified normalisation and entropy-weighting scheme so that indices are computed on the same 0–1 scale, improving comparability and interpretability. Third, it complements index construction with sensitivity and robustness analyses (COMSAM perturbations, a PCA benchmark, and a SPOTIS-based alternative DEI) and with log–log elasticity regressions linking the digital economy to logistics and to macro/sectoral outcomes. For inference, Eicker–White heteroskedasticity-consistent standard errors (HC0) and percentile bootstrap intervals are employed. A single macro control—fixed-asset investment per capita—is used to balance parsimony and multicollinearity in the short annual sample, with variance-inflation factors reported to assess collinearity.
The digital economy index (DEI) is constructed using entropy-weighted TOPSIS and, in parallel, a modified SPOTIS index based on the same normalised input matrix and entropy-weight vector. Using annual data for 2009–2023, the analysis quantifies the association between the DEI, MLP and economy-wide outcomes through log–log specifications, aligned with the most recent comparable official statistics for Gansu.
Figure 1 sketches the research pathway from digital economy development to logistics upgrading and, subsequently, to sectoral value added and GDP.
2. Literature Review
Digital economy represents a new stage of economic development driven by advances in digital technologies (
Hungerland et al., 2015). It has transformed traditional economic models, influenced the quality and efficiency of business operations, and contributed to overall economic growth (
Teece, 2018;
B. Zhou, 2024). From multiple perspectives, the digital economy can be defined via the resource view (technological foundations), the content view (information and data management), and the human-capital view (creativity, skills and knowledge enhanced by information technology) (
Strohmeier, 2020;
Williams, 2021;
X. Chen & Ling, 2023;
J. Zhang & Chen, 2024;
Y. Li et al., 2020). Complementary lenses include the process/flow view, which examines how technology supports organisational operations; the structural view, which discusses economic transformation and internet-based architectures; and the organisational-framework view, which addresses e-commerce, e-business, and platform ecosystems (
Williams, 2021). To synthesise these strands,
Y. Li et al. (
2020) argue that the digital economy is not merely a simple integration of technologies but achieves interconnection across industries through intelligent systems. In logistics specifically, digital transformation has markedly improved efficiency and competitiveness (
Le Viet & Dang Quoc, 2023;
Z. Liu et al., 2024). In parallel, research on Logistics 4.0 has deepened: cyber-physical systems, the Internet of Things, analytics, and artificial intelligence are reshaping processes, capabilities and operating models, providing a conceptual foundation for indicator selection and mechanism analysis (
Winkelhaus & Grosse, 2020).
The rapid development of digital economy has accelerated the digital transformation process in the logistics industry (
Cichosz et al., 2020). Research indicates that China’s digital economy has fundamentally transformed the logistics industry by promoting more intelligent operations, improving efficiency, and driving new business models including third-party and fourth-party logistics (
F. Zhou & Gao, 2023;
Zhuang et al., 2023). As digitalisation deepens, platform-based models and new circulation technologies diffuse into the real economy, and the logistics market has expanded rapidly despite shocks such as COVID-19. Leading regions such as Guangdong, Beijing and Jiangsu have integrated digital economy and logistics more effectively, whereas relatively underdeveloped regions have lagged behind; as core digital industries grow and logistics modernisation advances, this integration is expected to diffuse nationwide (
W. Zhang et al., 2022). These regional patterns not only highlight the uneven pace of integration but also point to the need for systematic assessment. Recent reviews have mapped the main logistics research areas and KPIs under e-commerce, offering a framework for linking logistics outcomes more directly with digital enablement (
Zennaro et al., 2022).
In recent years, a growing body of research has examined regional disparities in the integration of the digital economy with the logistics industry. The findings suggest that the eastern coastal regions exhibit comparatively advanced technological infrastructure and stronger capacity in talent acquisition, whereas the western provinces—particularly Gansu—continue to struggle with delayed technological upgrading and limited capital investment (
X. Xie & Wang, 2023;
Y. Zhou & Lin, 2024;
Xue et al., 2024). Although the integration process in these regions started relatively late, policy support and public investment have been increasingly directed to accelerate catch-up in these regions. The digital economy plays a crucial role in the integration and enhancement of the logistics industry: technological advances have given rise to innovative solutions that improve the efficiency of transportation, warehousing, and overall supply chain management. Through digital platforms, the digital economy can effectively reduce enterprises’ transaction, information, search, and fulfilment costs (
Feng, 2023).
The transformative role of the digital economy in logistics is significant, enhancing operational efficiency and reducing costs through digital technologies (
Trushkina et al., 2020). This transformation has promoted real-time tracking, automation, and improved data-driven decision-making, which are essential elements of modern logistics systems (
Odimarha et al., 2024). The rapid expansion of e-commerce and last-mile delivery services has largely benefited from the integration of digital platforms, which optimise operational efficiency and enhance customer experience (
Bergmann et al., 2020;
Lim et al., 2018). Quantitative studies, such as regression analysis and entropy-weighted TOPSIS frameworks, have demonstrated the positive impact of digital transformation on logistics performance in regions with advanced infrastructure (
Jiang et al., 2023;
Sen et al., 2021). Furthermore,
Luo and Wang (
2022) reported that the logistics industry plays an important role in economic growth in western China;
J. Lu and Chuah (
2023) reached a similar conclusion for Qinghai Province The digital economy is pivotal for optimising logistics efficiency and promoting regional growth in the west (
J. Yang & Wang, 2024). At a broader level, systematic reviews of Industry 4.0 and supply chain performance underscore the benefits, challenges, and success factors of adopting core digital technologies in logistics-intensive contexts (
Rad et al., 2022), while resilience-oriented reviews further highlight their role in mitigating risks during disruptions (
Spieske & Birkel, 2021).
It is widely recognised that digital technologies enhance transportation efficiency, optimise supply chain coordination, improve resource allocation and accelerate the transformation of traditional logistics towards more intelligent and platform-based models (
Achkasova, 2024). Most research focusing on China uses data from more developed eastern coastal regions, systematically revealing positive relationships between digital infrastructure development, digital industry agglomeration and logistics performance (
X. Fan et al., 2024;
W. Zhang et al., 2022). By contrast, quantitative analyses of underdeveloped north-western regions, such as Gansu, remain relatively limited. These regions tend to suffer inherent disadvantages in geographic location, financial support, and human-capital capacity, which constrain industrial upgrading (
C. Li et al., 2024). Their distinctive geography, industrial structures, and resource endowments also raise the open question of whether the digital economy–logistics coupling observed in developed regions can be generalised to the north-west. Recent coupling–coordination studies provide empirical frameworks for jointly assessing the development of digital economy and logistics subsystems at the provincial level, including evidence of positive interaction effects in less-developed or rural settings (
Y. Guo & Ding, 2022;
Y. Guo et al., 2022;
Shu et al., 2023). At the same time, methodological cautions regarding widely used logistics indicators, such as the Logistics Performance Index, underscore the need for careful metric design and robustness checks when extending such analyses (
Beysenbaev & Dus, 2020). In this regard, the value added of transportation, warehousing and postal services is frequently employed in official statistics as a consistent province-year proxy for logistics activity (
Achkasova, 2024;
Z. Fan et al., 2024;
J. Lu & Chuah, 2023;
Rad et al., 2022;
Spieske & Birkel, 2021;
J. Yang & Wang, 2024); while convenient and closely tied to macro accounts, this measure cannot fully capture micro-level frictions such as firm structure, freight intensity or service heterogeneity, so empirical interpretations should be circumspect and complemented by robustness exercises (
Fugate et al., 2010).
In addition, many existing studies rely on static cross-sectional data or short-term panel models. These approaches highlight correlations, but they are limited in addressing regional variation and evaluating robustness (
Beysenbaev & Dus, 2020;
Fugate et al., 2010;
Ge et al., 2023;
Shu et al., 2023;
C. Wang et al., 2023). For example, digital economy performance is often evaluated using subjectively assigned weights, which may not reflect genuine differences in indicator importance across regions. Similarly, research on the response mechanisms of logistics output tends to lack cross-model and cross-method validation (
C. Guo et al., 2024;
Y. Guo et al., 2022). Closing these gaps calls for expanded regional representation, standardized and transparent weighting/normalization processes, and robust supplementary strategies such as alternative MCDA formulations, sensitivity testing, and benchmarking.
This study extends the literature by focusing on a western province with limited coverage, employing harmonised multi-criteria evaluation methods, and validating results through robustness checks to enhance methodological transparency and empirical credibility. In light of the above, the present study concentrates on an under-represented western province over 2009–2023, integrates two multi-criteria decision-making methods—entropy-weighted TOPSIS and SESP-SPOTIS—under a unified normalisation-and-weighting scheme to construct a digital economy index, and employs log-elasticity regressions with multiple robustness checks to examine impact pathways and regional differences. For a structured summary of representative studies underpinning the measurement choices and mechanisms discussed here, see
Table A1.
5. Conclusions and Recommendations
5.1. Conclusions
Gansu Province lies in China’s northwest inland region, bordering the less-developed provinces of Xinjiang, Qinghai, Ningxia, and Inner Mongolia (
G. Wang & Chen, 2025). Despite its vast territory, fragile ecology and consistently low per capita GDP—about CNY 48,000 in 2023—identify it as a typical underdeveloped region (
Z. Zhang et al., 2023). Against this background, the digital economy is at a critical development stage yet shows a steady upward trajectory over 2009–2023. Under a common 0–1 scale, both the entropy-weighted TOPSIS and the SESP-SPOTIS indices display similar dynamics with a temporary dip in 2021 and subsequent recovery, suggesting that the long-run improvement is not an artefact of a particular index construction. At the dimension level, entropy-derived weights point to digital infrastructure as the largest contributor, followed by industrial digitalisation and the digital economy environment, consistent with the central role of hardware and software facilities in enabling digital activity (
He et al., 2023). Within the infrastructure family, the faster rise of software-related indicators has been a key driver; by contrast, negative growth episodes in digital industrialisation reveal bottlenecks in software service revenue and the number of electronics manufacturing firms that merit targeted attention. The application environment grows more slowly, implying scope for policies that expand internet services and e-commerce penetration, while the talent environment still lags and high-quality talent outflow—especially from higher education—remains pronounced (
Pang, 2016;
B. Yang, 2024;
Yao & Zhang, 2024).
With respect to real-economy linkages, the log-elasticity regressions indicate a statistically significant and economically meaningful association between modern logistics production and provincial GDP, as well as between logistics and value added in the primary, secondary and tertiary sectors: the elasticity of logistics output is positive and statistically significant across all four models. These associations are estimated in log–log specifications with a single macro control—fixed-asset investment per capita—to preserve parsimony and limit multicollinearity given the short annual sample. The digital economy index (DEI) is positively associated with GDP and with value added in the primary and tertiary sectors, while its coefficient is not statistically significant in the secondary sector. This pattern is consistent with deeper digital integration on the services side and with a comparatively slower diffusion of digital technologies into manufacturing. In agriculture, logistics and digitalisation jointly support quality upgrading through cold-chain development, reduced transport losses and faster market access for speciality produce, which can raise farm incomes (
Dani, 2015;
Han et al., 2021;
Y. Li & Liu, 2024;
Lomotko et al., 2021;
Shi & Chen, 2024;
Yan et al., 2023).
Multiple robustness checks reinforce these findings. The two MCDA indices yield highly coherent levels and rankings; COMSAM sensitivity bands around both indices are narrow, indicating stability under plausible measurement noise; and inference based on Eicker–White (HC0) heteroskedasticity-consistent standard errors together with bootstrap percentile intervals confirms the significance profile of the elasticity estimates. These checks speak to statistical robustness rather than causal identification, which lies beyond the scope of this study.
Sustained investment in digital infrastructure, continued progress in industrial digitalisation and improvements in the digital economy environment would further strengthen the complementarity between the digital economy and modern logistics. Priorities include addressing software-service and electronics-manufacturing bottlenecks, enlarging e-commerce and internet-service coverage, and implementing talent-retention policies commensurate with Gansu’s development stage (
Pang, 2016;
B. Yang, 2024;
Yao & Zhang, 2024). Such measures can raise logistics efficiency and service quality, and, through that channel, support coordinated upgrading across the primary, secondary and tertiary sectors—thereby contributing institutional and technological support to high-quality, sustainable regional growth in Gansu.
5.2. Recommendations for Promoting the Development of Logistics Industry in Gansu Province Under the Digital Economy
The evidence in
Section 4 indicates that modern logistics production exhibits a robust, positive elasticity with provincial GDP and with value added in the primary, secondary and tertiary sectors, while the digital economy index (DEI) is positively associated with GDP and with the primary and tertiary sectors but is not statistically significant in the secondary sector. Building on these results, the following policy priorities aim to strengthen complementarities between the digital economy and logistics while addressing the observed manufacturing gap.
Continue upgrading digital infrastructure and service accessibility. Sustained investments in core digital infrastructure—big-data centres, industrial Internet of Things (IoT) platforms, high-speed broadband, and edge-computing nodes—remain foundational for smart logistics operations (
Joshi et al., 2024;
R. Li et al., 2023;
Q. Song, 2024;
X. Yang, 2024). Beyond visible assets (fibre networks, data centres), equal emphasis should be placed on service accessibility and quality, especially in rural and remote counties, through concurrent expansion of coverage and digital-skills training so that digitalisation benefits are broadly shared (
Qiao & Lü, 2025;
B. Yang, 2024). Leveraging the national integrated computing-power network and Gansu’s pilot role can support low-latency logistics monitoring and emergency response via multi-level edge coordination (
Joshi et al., 2024;
R. Li et al., 2023).
Deepen industrial digitalisation with a specific focus on manufacturing. Given the non-significant DEI coefficient in the secondary sector, targeted measures are warranted to accelerate digital adoption in manufacturing. Recommended actions include: promoting interoperability between enterprise production systems and logistics systems (e.g., manufacturing execution systems (MES) and enterprise resource planning (ERP) with warehouse management systems (WMS) and transportation management systems (TMS)), supporting cloud-based supply chain visibility, and piloting intelligent sorting centres and semi-automated warehouses in key parks (
B. Cao, 2025;
H. Liu et al., 2022;
W. Zhang et al., 2022). Promoting integration across production, education, research, and application will help foster a virtuous cycle in which digital and logistics industry chains grow synergistically (
Yuan & Yang, 2024).
Improve the institutional environment and build human capital for digital logistics integration. Drawing on practices in more developed regions, provincial authorities can refine digital economy regulations, streamline procedures for SME digital transformation and reduce compliance costs (
Yu & Liu, 2022). Talent remains a binding constraint; targeted programmes (tax incentives, project-linked subsidies and industry funds) should be used to attract and retain professionals in software, data analytics and network engineering, coupled with university–industry pipelines to slow high-end talent outflow (
X. Cao & Bao, 2023;
S. Chen et al., 2025;
J. Li, 2023). Routine, indicator-based monitoring and periodic policy reviews are advised to keep support measures targeted and adaptive to changing conditions (
Jia et al., 2024;
P.-J. Xie et al., 2023).
Advance a “digital agriculture–smart logistics–green development” pathway. Although the primary sector shows a smaller direct elasticity than services, cold-chain expansion, traceability, and rural e-commerce can raise agricultural efficiency and incomes while reinforcing logistics demand (
Dong & Pu, 2025;
X. Fan et al., 2024). Priority projects include precision agriculture, agricultural IoT and big-data platforms, unmanned aerial vehicle (UAV)–enabled field monitoring, and joint traceability/warehouse hubs developed by producers, processors and cold-chain firms (
Gansu Provincial People’s Congress Standing Committee, 2024;
J. Y. Lu et al., 2025;
Qiao & Lü, 2025;
Saini et al., 2025;
C. Song et al., 2022;
Z. Wang et al., 2025;
X. Zhang et al., 2022;
Y. Zhou & Zhang, 2024).
In conclusion, the empirical profile documented in this study suggests a phased roadmap for Gansu. The first priority is to consolidate infrastructure and accessibility, followed by accelerating digitalisation in manufacturing sectors where significant gaps remain. Parallel efforts are required to enhance the business environment and strengthen talent pipelines, while the upgrading of agri-logistics ecosystems constitutes another critical dimension. By advancing these complementary measures, the province can improve logistics efficiency and service quality and, through that channel, foster high-quality and sustainable economic growth.
5.3. Limitations and Future Research
The empirical window ends in 2023 because of the release cycle of official yearbooks; monetary series are in current prices, and while min–max normalisation places all indicators on a common 0–1 scale, inflation and relative price shifts may still shape trajectories. Indicator families follow domestic statistical definitions with an explicit cross-walk to international constructs; where provincial time series are unavailable, transparent proxies are employed. Entropy weights are held fixed across years to preserve comparability, and indices are reported under both a compensatory (entropy-weighted TOPSIS) and a non-compensatory (SESP-SPOTIS) scheme with a PCA benchmark. Given catch-up dynamics, most indicators trend upward and composite indices rise; accordingly, cross-method agreement and COMSAM sensitivity bands mitigate, but do not eliminate, this mechanical component. The log–log regressions are reduced-form associations estimated on a short annual sample. Accordingly, statistical inference uses Eicker–White (HC0) heteroskedasticity-consistent standard errors and percentile bootstrap intervals and does not attempt causal identification via extensive control sets or instruments. Modern logistics production is proxied by the value added of transportation, warehousing, and postal services, which may under-represent platform-based logistics; the single-province design also limits external validity. To contain over-parameterization and multicollinearity in this short sample, a single macro control—fixed-asset investment per capita—is included; while this enhances parsimony, it may leave some macro channels unmodeled.
Looking ahead, several extensions would strengthen the analysis while maintaining continuity with the present design. As new yearbooks are released, the sample can be extended and deflated variants tested; where feasible, prefecture-level and operational micro-data (e.g., freight turnover, express parcel volumes, logistics employment) can complement value-added proxies. Indicator design may be aligned more closely with international frameworks, and alternative weighting/normalisation choices—such as time-varying entropy or CRITIC weights—can be evaluated alongside break tests or detrended indices to separate structural trends from shocks. With longer time series or broader cross-provincial panels, identification strategies (e.g., instrumental variables, lag structures, spatial panels) could be implemented to strengthen causal interpretation; methodologically, dynamic-factor or Bayesian factor models offer natural complements to PCA for benchmarking. Comparative analyses across western provinces and within-province heterogeneity would improve generalisability and sharpen policy relevance.