Regional digitization became an important driving force for high-quality economic development. Digital empowerment can effectively balance factor supply and demand and promote high-quality economic development. This study selects a sample of Chinese cities from 2011 to 2018 to investigate the association between regional digitalization and high-quality economic development. This study further examines the non-linear relationship between regional digitalization and high-quality economic development using market and government governance as threshold variables. This study uses a two-way fixed effects model with a threshold effects model for the econometric analysis. The study finds that regional digitalization effectively contributes to high-quality economic development from three major changes: quality, efficiency, and power. Thresholds of effective markets and productive government characterize the impact of regional digitalization on quality economic development. The more effective the marketization process or the building of a productive government, the more effectively the digitization of the region contributes to high-quality economic development. The contribution of this paper is to reveal the internal logic of the regional digitalization process in advancing quality economic development and to provide new theoretical evidence for action plans to strengthen the construction of efficient markets and responsive government.
10 January 2025 in Journal of International Financial Management & Accounting
Economic resilience is crucial for urban sustainability as it ensures stability and growth in the face of external shocks, promotes social cohesion and inclusivity, fosters environmental sustainability, and enhances cities’ adaptability to future challenges. This study expands the conventional perspective on economic resilience beyond the context of shocks, focusing on the inherent resilience of regional economic systems. A novel method for quantifying economic resilience is introduced, emphasizing system sensitivity and adaptability. Using Chinese prefecture-level city data and an econometric model, we empirically examine how Fintech, a major digital transition in current urban systems, affects economic resilience. The findings reveal that Fintech has a substantial positive effect on economic resilience, primarily through the upgrading of industrial structures and technological innovation. Furthermore, there is significant regional heterogeneity in the impact of Fintech on economic resilience, with more pronounced contributions in the east, central, and western regions of China, as opposed to the northeast. Additionally, the impact of Fintech on economic resilience is more substantial in large-scale cities. The promotion of economic resilience through digital transformation serves as a potent risk prevention measure. Understanding the role of economic resilience in urban systems holds valuable implications for countries worldwide.