The impact mechanism of smart city construction on digital business environment: A panel data analysis based on 284 Chinese cities from 2009 to 2021
Year: 2025
Type: article
Abstract: Leveraging the advantages of intelligent planning and management, smart city development can unlock the potential of the digital economy, enhance the efficiency of digital government services, refine data element market rules, and foster a more standardized and orderly digital business environment. Using panel data from 284 Chinese cities (2009–2021), this study employs a multi-time-point difference-in-differences model and a mediation effect model to examine the impact of smart city development on the digital business environment. The findings reveal that smart city development significantly enhances the digital business environment, a conclusion robust to various tests. Moreover, smart city initiatives indirectly improve the digital business environment by optimizing urban resource allocation and fostering talent accumulation. The impact exhibits significant heterogeneity, with city size and administrative level influencing the magnitude of the effects. Based on the empirical analysis, the policy recommendations are offered, such as strengthen digital infrastructure and improve support mechanisms, promote resource allocation optimization and strengthen the interaction between smart cities and the digital business environment, and accelerate talent aggregation and support the digital business environment.
Authors: Diandian Zhang, Zhiqian Tan, Shaolei He
Institution: Shandong University of Finance and Economics
Language: English
Subfield: Media Technology
Field: Engineering
Domain: Physical Sciences
Open Access status: diamond
OpenAlex ID: W4409971163