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The road to entrepreneurship: The effect of China's broadband infrastructure construction

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  • Huang, Zhuo
  • Tao, Yunqing
  • Zhang, Qidi
  • Ye, Yongwei

Abstract

Reasonable assessments of the impact of information infrastructure construction on entrepreneurship will support the development of the digital economy in China. Using nationwide data from 2005 to 2017, this paper analyzes the causal effect of the “Broadband China” pilot policy on entrepreneurship based on a difference-in-differences approach. We find that information infrastructure construction significantly enhances entrepreneurship, which is robust under different settings. A mechanism exploration suggests that constructing information infrastructure benefits information acquisition, knowledge spillovers, and risk-taking behavior, which illustrate the internal mechanism of promoting entrepreneurship. Taken together, this paper supports the positive role of the digital economy in the promotion of entrepreneurship in addition to providing new insights into the construction of information infrastructure to support entrepreneurship.

Suggested Citation

  • Huang, Zhuo & Tao, Yunqing & Zhang, Qidi & Ye, Yongwei, 2023. "The road to entrepreneurship: The effect of China's broadband infrastructure construction," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1831-1847.
    • Handle: RePEc:eee:ecanpo:v:80:y:2023:i:c:p:1831-1847
    DOI: 10.1016/j.eap.2023.11.004
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    More about this item

    Keywords

    Information infrastructure; Entrepreneurship; Information acquisition; Knowledge spillover; Risk-taking;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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