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Impact of new government–business relations on urban digital economy: Empirical evidence from China

Author

Listed:
  • Chen, Yongyu
  • Peng, Zihao
  • Peng, Caodie
  • Xu, Wanli

Abstract

Drawing from dynamic capability theory, we investigate how new government–business relations impact urban digital economy with mediating and moderating effect model, using panel data from 242 prefecture-level Chinese cities over 2017–2019. We find that building new government-business relations promote urban digital economy, with urban service capability playing a mediating role. We also find that digital infrastructure strengthens the impact of urban service capacity on urban digital economy. These findings are robust and more significant in eastern and larger cities. Our study provides new evidence on exploring mechanism and conditions by which new government-business relations influence urban digital economy.

Suggested Citation

  • Chen, Yongyu & Peng, Zihao & Peng, Caodie & Xu, Wanli, 2023. "Impact of new government–business relations on urban digital economy: Empirical evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323006979
    DOI: 10.1016/j.frl.2023.104325
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    More about this item

    Keywords

    New government–business relations; Digital economy; Digital infrastructure; Urban service capability; Dynamic capability theory;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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