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How does broadband infrastructure promote entrepreneurship in China: Evidence from a quasi-natural experiment

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  • Luo, Qi
  • Hu, Haoyu
  • Feng, Dawei
  • He, Xiaogang

Abstract

Using the Broadband China strategy as a quasi-natural experiment, our study attempts to understand how broadband infrastructure (BI) impacts entrepreneurship in China. Employing a staggered difference-in-difference approach, we argue that BI significantly enhances entrepreneurship, and that this conclusion holds after considering the identification of assumptions and a range of other factors that may interfere with the estimation results. The mechanism exploration reveals that human capital agglomeration and financial development are the main pathways through which BI encourages entrepreneurial activities. Furthermore, the positive effects of BI are bigger in eastern cities, high market-oriented cities, and among cities with excellent traditional infrastructure. Our findings reveal the role of improving BI in facilitating the development of new ventures in China.

Suggested Citation

  • Luo, Qi & Hu, Haoyu & Feng, Dawei & He, Xiaogang, 2022. "How does broadband infrastructure promote entrepreneurship in China: Evidence from a quasi-natural experiment," Telecommunications Policy, Elsevier, vol. 46(10).
    • Handle: RePEc:eee:telpol:v:46:y:2022:i:10:s0308596122001422
    DOI: 10.1016/j.telpol.2022.102440
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    Cited by:

    1. Yifeng Philip Chen & Edward J. Oughton & Jakub Zagdanski & Maggie Mo Jia & Peter Tyler, 2023. "Crowdsourced data indicates broadband has a positive impact on local business creation," Papers 2308.14734, arXiv.org.
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    3. Jiang, Nana & Jiang, Wei & Wang, Yanfei & Zhang, Jinning, 2024. "Impact of financial reform on urban resilience: Evidence from the financial reform pilot zones in China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    4. Li, Zhaohua & Pang, Suqin & Zhu, Zhiyun, 2024. "The impact of pilot free trade zones on entrepreneurship: Evidence from a quasi-natural experiment in China," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    5. Xin Tan & Jinfang Jiao & Ming Jiang & Ming Chen & Wenpeng Wang & Yijun Sun, 2024. "Digital Policy, Green Innovation, and Digital-Intelligent Transformation of Companies," Sustainability, MDPI, vol. 16(16), pages 1-23, August.
    6. Li, Yutao & Zhang, Jinning & Lyu, Yanwei, 2023. "Does telecommunications infrastructure promote entrepreneurship in developing countries? Evidence from a quasi-natural experiment in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 106-119.
    7. Wei Jiang & Ke-Liang Wang & Zhuang Miao, 2024. "How does internet development affect urban eco-resilience: evidence from China," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-40, April.
    8. Ablam Estel Apeti & Jean-Louis Combes & Eyah Denise Edoh, 2023. "Entrepreneurship in developing countries: can mobile money play a role?," Working Papers hal-04081304, HAL.
    9. Wang, Chong & Wang, Lei, 2024. "Does broadband infrastructure promote urban innovation? Evidence from “Broadband China” demonstration policy," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 349-362.
    10. Li, Xitong & He, Peiming & Liao, Honglin & Liu, Jindan & Chen, Litai, 2024. "Does network infrastructure construction reduce urban–rural income inequality? Based on the “Broadband China” policy," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    11. Kangjuan Lv & Jiaqi Li & Ye Zhao, 2023. "Can Internet Construction Promote Urban Green Development? A Quasi-Natural Experiment from the “Broadband China”," IJERPH, MDPI, vol. 20(6), pages 1-21, March.

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    More about this item

    Keywords

    Entrepreneurship; Broadband China strategy; Staggered difference-in-difference; Quasi-natural experiment;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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