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The scale paradox of digital economy: Revealing its dual effects on manufacturing chain resilience in China’s urban agglomerations

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  • Gao, Hewen
  • Shi, Weilin

Abstract

Based on panel data from China's top ten urban agglomerations from 2014 to 2024, this study constructs a novel evaluation system integrating TOPSIS niche projection with four-dimensional resilience metrics. The findings indicate that while the development of the digital economy weakens the resilience of the manufacturing industrial chain at the city level, it significantly enhances it at the urban agglomeration level, demonstrating a scale paradox rooted in "specialization vulnerability" versus "network synergy effects." Mechanism analysis reveals that industrial upgrading, international trade, and digital finance collectively constitute key transmission channels. Notably, digital finance serves as an emerging intermediary channel, providing crucial financial support for industrial chain resilience. This research advocates for integrated digital infrastructure planning at the urban agglomeration scale.

Suggested Citation

  • Gao, Hewen & Shi, Weilin, 2026. "The scale paradox of digital economy: Revealing its dual effects on manufacturing chain resilience in China’s urban agglomerations," Finance Research Letters, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325025310
    DOI: 10.1016/j.frl.2025.109282
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    References listed on IDEAS

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    1. Frank Neffke & Martin Henning & Ron Boschma, 2011. "How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions," Economic Geography, Taylor & Francis Journals, vol. 87(3), pages 237-265, July.
    2. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
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