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- Title
The impact of digital government policy on entrepreneurial activity in China.
- Authors
Gan, Tian; Zhang, Mingxin; Zhang, Zhiqiang
- Abstract
Digitalization of government is a crucial strategy for enhancing national competitiveness and improving public services in numerous countries. This study introduced a quasi-natural experiment in China to evaluate the impact of a country's digital government policy on entrepreneurship. Using city-level data and regression analysis, we find that implementing the policy increases the number of newly registered firms by 0.0028 per 10,000 working-age labours. The study also examines potential mechanisms for this effect and finds evidence that the policy improves government efficiency, reduces risk-seeking behaviours of local government, and promotes access to financial resources. This study's findings contribute to research on digital government initiatives in developing countries and can inform future policy decisions. • Digital government policies can positively affect entrepreneurship. • Mechanisms for this effect are improving government efficiency, reducing risk-seeking behaviors, and access to financial resources. • Better marketability can strengthen the effects.
- Subjects
CHINA; INTERNET in public administration; GOVERNMENT policy; ADMINISTRATIVE efficiency; MUNICIPAL services; POLITICAL entrepreneurship
- Publication
Economic Analysis & Policy, 2023, Vol 79, p479
- ISSN
0313-5926
- Publication type
Article
- DOI
10.1016/j.eap.2023.06.029