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Kickstarting by digitalizing: Evidence from emerging economies

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  • Huo, Dong
  • Chen, Daming
  • Ma, Zhenzhong

Abstract

Drawing on 9458 crowdfunding projects across 111 emerging economies from Kickstarter, this study reveals that digitalization significantly increases the number of backers and pledged amount of a project, as well as the total number of successful projects of an emerging economy. Furthermore, greater geographical and economic distances from the nearest developed economy weaken the effects of digitalization in the emerging economy. Similarly, institutional distance in terms of rule of law, control of corruption, or government effectiveness dampens the effects. Finally, the effects are more pronounced in emerging economies associated with China’s foreign economic policies due to its OFDI in digital infrastructure. This study provides evidence on digital-driven entrepreneurial finance in emerging economies and highlights the importance of digital infrastructure and globalization.

Suggested Citation

  • Huo, Dong & Chen, Daming & Ma, Zhenzhong, 2025. "Kickstarting by digitalizing: Evidence from emerging economies," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325020458
    DOI: 10.1016/j.frl.2025.108791
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    1. Chen, Daming & Huo, Dong, 2025. "Signals of video game success on steam: Evidence from Kickstarter campaigns," Finance Research Letters, Elsevier, vol. 86(PG).

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