IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v81y2024icp541-555.html
   My bibliography  Save this article

Government innovation preferences, institutional fragility, and digital economic development

Author

Listed:
  • Ye, Muqing
  • Zeng, Wei

Abstract

Institutional fragility is an important factor influencing government innovation preferences and driving the development of the digital economy. This study incorporates institutional fragility into the effectiveness of government innovation preferences in driving the digital economy's development. Based on panel data from 30 provinces and regions in China from 2013 to 2021, a "vertical-horizontal" hierarchy method is used to assess the level of digital economic development. A fixed-effects model is applied to examine the impact and transmission mechanism of government innovation preferences on the digital economy. The study also analyzes the moderating effect of institutional fragility and threshold effects. The results are as follows: (1) Digital economic development exhibits an "East high-West low" development pattern, with the boundary line becoming more distinct over time. (2) Government innovation preferences significantly positively influence digital economic development, with a more pronounced effect in the western regions. Overall, a 1 % increase in government innovation preferences results in an average 2.041 % increase in digital economic development, with regional innovation capacity playing a partial mediating role. (3) Institutional fragility negatively moderates the effect of government innovation preferences on the digital economy, and there is a dual-threshold effect. As institutional fragility eases, the driving force of government innovation preferences shows a stepwise upward trend.

Suggested Citation

  • Ye, Muqing & Zeng, Wei, 2024. "Government innovation preferences, institutional fragility, and digital economic development," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 541-555.
    • Handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:541-555
    DOI: 10.1016/j.eap.2023.12.023
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592623003429
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2023.12.023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:541-555. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.