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Local Digital Economic Growth, Enterprise Digital Transformation, and Digital Dividends: Evidence from China

Year: 2025

Type: article

Abstract: Achieving digital transformation in enterprises is vital for advancing the digital economy. Using the World Bank’s China Enterprise Survey data, this study investigates how local digital economic growth impacts enterprise transformation. Findings suggest that higher local digital growth significantly boosts enterprise transformation, thereby improving short-term operations and long-term innovation. Remarkably, threshold regression reveals a stronger impact on larger enterprises and those with higher human capital. Additional analyses demonstrate that effective access to digital dividends enhances enterprises’ production, R&D, and management. These results offer guidance for local governments, supporting digital shifts and helping enterprises tailor transformation strategies.

Source: Systems

DOI: 10.3390/systems13040297

Authors: Yunqi Yang, Grace T. R. Lin

Institution: National Yang Ming Chiao Tung University

Language: English

Topic: Digital Economy and Transformation

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $2,896