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Government procurement digitalization and corporate digital transformation: Evidence from China’s government procurement cloud platforms

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  • Xia, Kainan
  • Zhao, Lexin

Abstract

This study utilizes data of China’s A-share listed companies from 2015 to 2022, using the launch of government procurement cloud platforms by China’s local governments as an exogenous policy shock, to study the impact of government procurement digitalization on corporate digital transformation. The results show that government procurement digitalization significantly promotes corporate digital transformation, encompassing the application of digital technologies, the development of internet-based business models, intelligent manufacturing, and the construction of modern information systems. The mechanisms behind the positive link are the demand-pull effect and the cost-reduction effect. Heterogeneity analysis reveals that the promotional effect of government procurement digitalization on corporate digital transformation is more significant in enterprises with lower pre-policy digitalization levels, non-state-owned enterprises, and enterprises with higher pre-policy financing constraints. This study positions government procurement digitalization as an effective policy catalyst for corporate digital transformation, particularly benefiting enterprises with initial digitalization disadvantages.

Suggested Citation

  • Xia, Kainan & Zhao, Lexin, 2026. "Government procurement digitalization and corporate digital transformation: Evidence from China’s government procurement cloud platforms," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 21-34.
    • Handle: RePEc:eee:ecanpo:v:89:y:2026:i:c:p:21-34
    DOI: 10.1016/j.eap.2025.11.021
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    Keywords

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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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