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From silos to markets: How data factor marketization drives digital-physical technology integration

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  • Zhang, Pengfei
  • Zhang, Ruilin
  • Liu, Zitong

Abstract

As data has emerged as a core factor of production, its market-based allocation is increasingly viewed as a catalyst for integrating digital technologies with the real economy. This paper investigates the impact of data factor marketization (DFM) on firm digital-physical technology integration (DPTI), exploiting the staggered rollout of data trading platforms across Chinese cities as a quasi-natural experiment. Using data on Chinese A-share listed firms from 2008 to 2023 and employing a staggered difference-in-differences model with propensity score weighting, we find that DFM significantly enhances DPTI. The effect primarily operates through alleviating financing constraints, optimizing human capital, enhancing information transmission, and improving governance capacity. Furthermore, the positive impact is amplified in regions with stronger intellectual property protection and higher market concentration, as well as among large enterprises, non-state-owned firms, and those in high-tech or digital economy sectors. Our findings provide new insights into maximizing the strategic value of data and promoting digital-physical convergence.

Suggested Citation

  • Zhang, Pengfei & Zhang, Ruilin & Liu, Zitong, 2026. "From silos to markets: How data factor marketization drives digital-physical technology integration," Economic Modelling, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:ecmode:v:161:y:2026:i:c:s0264999326001628
    DOI: 10.1016/j.econmod.2026.107633
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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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