As Internet access grows at different rates across regions, the Internet has had variable effects on regional economies through agglomeration and spillover effects. This paper uses province-level panel data from 2000 to 2013 to study inequality in Internet access, its spatial effect on regional economies in China and the channels through which the spillover effects are most evident. We find that the Internet has dispersed quickly from core cities, such as Beijing and Shanghai, to coastal provinces; and has had increasingly significant effects on neighboring regions. However, the Internet speed is still comparatively low outside the core cities. We then use endogenous growth models to quantify the effect of Internet access on regional economies. Our results show that, while Internet dispersion is positively associated with economic growth, the spillover effect varies significantly by region and is more pronounced in developed regions. So is the effect of the science and technology environment. Developed regions have benefited the most in the process. The three channels of spillover are listed here in order of relative significance: economy, proximity and urbanization. The spillover effect of the Internet may lead to the divergence of regional economies, working against the national goal of reducing regional inequality.

In the context of the global information economy, ready access to the Internet is critical to a city’s competitiveness, which has prompted a number of cities to launch plans to establish wireless networks. Most literature on the development of wireless cities focuses on cities in Western countries, and few have discussed how Chinese cities have adopted wireless technologies in their urban infrastructure development efforts. This paper examines recent development and spatial distribution of public Wi-Fi access in Shanghai, a leading business hub in China. We mapped Wi-Fi hotspots through the government sponsored “i-Shanghai” project and China Mobile Communications Corporation (CMCC). We find that while telecommunication providers have been proactively deploying WLAN (wireless local area network，a proxy of public Wi-Fi or wireless access) hotspots in Shanghai, neither government sponsored WLAN hotspots nor facilities established by CMCC could cover the old traditional neighborhoods in the central city and sub-districts in remote rural areas. We also address the development of a more sustainable wireless city in Shanghai with a particular focus on digital divide and social equity issues.

The Taiwanese, who have accumulated rich experience from the strategy, have greatly promoted the development of the rural economy in mainland China through the establishment of rural Taiwanese enterprises. In the process of the strategy of rural revitalization, it is important to draw on the experience from Taiwan, and to acknowledge the leading role of Taiwanese entrepreneurs. In this study, we considered 941 rural Taiwanese enterprises that were registered in townships and villages in mainland China. Based on the cultural diffusion model, spatial analysis of GIS, and statistical methods, this study analyzed the spatial pattern and evolution of rural Taiwanese enterprises, and predicted the spatial diffusion pattern as well. The study found the following: (1) The reform and opening-up policy leads to the core position of Dongguan and Kunshan, and continues to consolidate the dual-core pattern with a noticeable combined effect. (2) Rural Taiwanese enterprises are mainly engaged in the secondary industry, with characteristics of small-scale and strong independence. They tend to be located in secondary cities in developed regions, in order to reduce costs and obtain maximum profits. (3) They display a V-shaped pattern covering the Eastern coastal line and Hunan-Sichuan line, with Guangdong as the node. (4) It is predicted that, in the next decade, the growth of the enterprises will slow down and their spatial diffusion pattern will be more conspicuous. While the spatial diffusion of Taiwanese enterprises slows down, more domestic investment may lead to industry vitalization in rural China.