Digital transformation has become a prominent trend in both the private and public sectors. Different from studies focusing on the transformation of the private sector, this study aims to investigate the impact of public sector digitalization, i.e., government digital transformation (GDT), on land use efficiency (LUE). Utilizing the introduction of the Big Data Bureau (BDB) as a quasi-natural experiment to GDT, this study employs a staggered difference-in-differences method (DID) and finds that GDT is significantly and positively related to LUE, denoting that cities undergoing GDT exhibit increased LUE relative to non-participants. These findings are robust after performing parallel trend tests, conducting the instrumental variable method and propensity score matching methods or entropy balance, considering heterogeneous treatment effects, and using other robustness checks. Furthermore, the heterogeneity analysis shows that GDT has a significantly stronger impact among eastern cities, cities with a greater degree of marketization, or cities with advanced Internet infrastructure. Finally, the rationale behind this effect is that GDT upgrades industrial structures and promotes innovation activities, thereby increasing LUE. This study adds to the literature by providing novel insights into the effects of public sector digitalization and its role in improving LUE.

This study examines the impact of China’s industrial land approval reform (ILAR) on the provision of subnational services. Utilizing the 2011 pilot reform policy approved by the State Council, we utilize a staggered Difference-in-Differences (DID) method to determine the reform’s impact on local economic growth and environmental protection. The findings reveal that the reform enhances local economic development and decreases pollution levels. Additionally, the reform significantly decreases land resource misallocation in pilot cities, enhancing productivity. We also find that local governments allocate more land to the tertiary sector through this reform, achieving industrial upgrading. The optimization effects are more pronounced in cities with higher fiscal pressure. Based on these findings, we recommend that policymakers sustain decentralization efforts and consider further incentives for cities under fiscal stress. We fill a gap in the literature by linking land use regulation with subnational service provision, contributing to the understanding of the socioeconomic benefits of decentralization and local government service levels.