How Does the Smart City Policy Influence Digital Infrastructure? Spatial Evidence from China

With the rapid development of the Internet and digital technology, digital infrastructure has become an important part of urban infrastructure. Many cities are enacting smart policies to promote the development of digital technology infrastructure. However, what are their mechanisms? There is curren...

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Main Authors: Meijing Song, Yuan Xiao, Yige Zhou
Format: Article
Language:English
Published: MDPI AG 2023-07-01
Series:Land
Subjects:
Online Access:https://www.mdpi.com/2073-445X/12/7/1381
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author Meijing Song
Yuan Xiao
Yige Zhou
author_facet Meijing Song
Yuan Xiao
Yige Zhou
author_sort Meijing Song
collection DOAJ
description With the rapid development of the Internet and digital technology, digital infrastructure has become an important part of urban infrastructure. Many cities are enacting smart policies to promote the development of digital technology infrastructure. However, what are their mechanisms? There is currently a shortage of literature on the subject. This paper tried to solve this problem and used China as an example. Using panel data from cities in China, this paper used the spatial multiple-period difference-in-difference (SDID) method to investigate the impact of smart city policy (SCP) on digital infrastructure. First, we found that SCP significantly promotes the construction of digital infrastructure, with strong positive spatial spillover effects. This result remained valid after a series of rigorous robustness tests. Second, we discovered that the indirect effects of policy implementation outweigh the direct effects. Furthermore, smart city development enhances local government investment in digital infrastructure, attracts more high-tech enterprises, and consequently drives improvements in urban digital infrastructure levels. Lastly, we observed that the effectiveness of smart city policies is stronger in cities with good fiscal conditions, strong economic development, and a thriving digital economy. This research will not only enrich research on smart cities but also provide policy recommendations for strengthening digital infrastructure.
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spelling doaj.art-1c74349e337843d4a74c5e1c9ead90182023-11-18T20:06:43ZengMDPI AGLand2073-445X2023-07-01127138110.3390/land12071381How Does the Smart City Policy Influence Digital Infrastructure? Spatial Evidence from ChinaMeijing Song0Yuan Xiao1Yige Zhou2School of Finance and Economics, Hainan Vocational University of Science and Technology, Haikou 571126, ChinaBlockchain Research Institute, Renmin University of China, Beijing 100872, ChinaSchool of Statistics and Mathematics, Zhongnan University of Economics and Law, Wuhan 430073, ChinaWith the rapid development of the Internet and digital technology, digital infrastructure has become an important part of urban infrastructure. Many cities are enacting smart policies to promote the development of digital technology infrastructure. However, what are their mechanisms? There is currently a shortage of literature on the subject. This paper tried to solve this problem and used China as an example. Using panel data from cities in China, this paper used the spatial multiple-period difference-in-difference (SDID) method to investigate the impact of smart city policy (SCP) on digital infrastructure. First, we found that SCP significantly promotes the construction of digital infrastructure, with strong positive spatial spillover effects. This result remained valid after a series of rigorous robustness tests. Second, we discovered that the indirect effects of policy implementation outweigh the direct effects. Furthermore, smart city development enhances local government investment in digital infrastructure, attracts more high-tech enterprises, and consequently drives improvements in urban digital infrastructure levels. Lastly, we observed that the effectiveness of smart city policies is stronger in cities with good fiscal conditions, strong economic development, and a thriving digital economy. This research will not only enrich research on smart cities but also provide policy recommendations for strengthening digital infrastructure.https://www.mdpi.com/2073-445X/12/7/1381smart city policydigital infrastructurespace multiphase DIDChina
spellingShingle Meijing Song
Yuan Xiao
Yige Zhou
How Does the Smart City Policy Influence Digital Infrastructure? Spatial Evidence from China
Land
smart city policy
digital infrastructure
space multiphase DID
China
title How Does the Smart City Policy Influence Digital Infrastructure? Spatial Evidence from China
title_full How Does the Smart City Policy Influence Digital Infrastructure? Spatial Evidence from China
title_fullStr How Does the Smart City Policy Influence Digital Infrastructure? Spatial Evidence from China
title_full_unstemmed How Does the Smart City Policy Influence Digital Infrastructure? Spatial Evidence from China
title_short How Does the Smart City Policy Influence Digital Infrastructure? Spatial Evidence from China
title_sort how does the smart city policy influence digital infrastructure spatial evidence from china
topic smart city policy
digital infrastructure
space multiphase DID
China
url https://www.mdpi.com/2073-445X/12/7/1381
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