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The digital economy and entrepreneurial dynamics: An empirical analysis of urban regions in China

Author

Listed:
  • Wang, Shucui
  • Song, Yutong
  • Min Du, Anna
  • Liang, Jia

Abstract

The economic landscape in China has evolved to what is termed a “new normal”, marked by a strategic focus on the digital economy as a lever for regional entrepreneurship. This change is considered essential for fostering shared wealth and elevating the standard of economic progress, aimed at tackling inequality and advancing inclusive finance. This article undertakes an empirical analysis of the relationship between the digital economy and entrepreneurial activities, utilising panel data from 284 prefecture-level cities in China from 2011 to 2021. The findings highlight the significant influence of the digital economy in stimulating entrepreneurial activity. In particular, the digital economy is found to boost urban entrepreneurial endeavours by improving the quality of urban human capital. Further investigation reveals a varied impact of the digital economy on urban entrepreneurial activity, with the eastern region exhibiting a more marked effect in facilitating urban entrepreneurship.

Suggested Citation

  • Wang, Shucui & Song, Yutong & Min Du, Anna & Liang, Jia, 2024. "The digital economy and entrepreneurial dynamics: An empirical analysis of urban regions in China," Research in International Business and Finance, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:riibaf:v:71:y:2024:i:c:s0275531924002526
    DOI: 10.1016/j.ribaf.2024.102459
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