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New engines of economic growth: How digital currencies lead the way to growth in the era of digital economy

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  • Zhang, Runze
  • Li, Zhijun
  • Xiao, Chunqu
  • You, Jiwang

Abstract

Drawing from city-level data spanning 2013 to 2020 in China, this study examines the economic outcomes of a digital currency pilot test policy. Through the application of a Difference-in-Differences (DID) model, the findings indicate areas promoting digital currencies are more inclined to draw businesses to establish and allocate investments into fixed assets, thereby fostering economic growth. Our empirical evidence also suggests that the robust adaptability of digital currencies across varied cultural contexts and geographical locations.

Suggested Citation

  • Zhang, Runze & Li, Zhijun & Xiao, Chunqu & You, Jiwang, 2023. "New engines of economic growth: How digital currencies lead the way to growth in the era of digital economy," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1597-1617.
    • Handle: RePEc:eee:ecanpo:v:80:y:2023:i:c:p:1597-1617
    DOI: 10.1016/j.eap.2023.10.028
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