Analysis reveals a significant rise in new enterprise registrations due to digital infrastructure, suggesting economic benefits in cities.
As the digital economy emerges as a key driver of economic growth, the mechanisms through which new digital infrastructure influences urban economic vitality require in-depth exploration. Using panel data from Chinese prefecture-level cities spanning 2015-2022, this study employs fixed effects models and instrumental variable methods to systematically examine how digital infrastructure affects urban economic vitality. The findings reveal that each one-standard-deviation increase in digital infrastructure leads to a significant 14.3%-18.2% rise in new enterprise registrations, with this effect mediated by technological innovation (accounting for 22.3% of the impact) and being particularly pronounced in eastern regions and cities with high human capital. These results provide empirical evidence for optimizing digital infrastructure deployment and promoting coordinated regional development.
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Muhamad Wahyu Adji Pamungkas (2025) studied this question.