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Public online attention and firm location decisions: Evidence from 286 cities in China

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  • Sun, Xiangdong
  • Zheng, Xinyi
  • Song, Zisheng

Abstract

With the development of the digital economy worldwide, public online attention can digitally reflect urban attractiveness for both residents and firms. However, existing studies rarely examine the role of public online attention in shaping business spatial dynamics and urban growth. Hence, this research aims to fill this gap by investigating the effects of public online attention on firm location decisions, utilizing Baidu Search Index data and firm registration panel data from 2011 to 2022 for 286 cities in China. The findings indicate that public online attention significantly influences firm location decisions. Specifically, a one-unit increase in online attention leads to around 13 % increase in firm registrations. Financial potential and human capital can also mediate the relationship between online attention and firm location decisions. Furthermore, the effects of online attention on firm location choices vary across different regions and cities. In eastern China and smaller cities, public online attention has a more significant effect on attracting firm settlements. Our findings shed light on urban governance planning in land use supply and urban space in the era of the digital economy. Effectively leveraging online attention may attract more firms, promote local economic growth, and potentially mitigate economic disparities across regions and cities.

Suggested Citation

  • Sun, Xiangdong & Zheng, Xinyi & Song, Zisheng, 2025. "Public online attention and firm location decisions: Evidence from 286 cities in China," Land Use Policy, Elsevier, vol. 159(C).
    • Handle: RePEc:eee:lauspo:v:159:y:2025:i:c:s0264837725003333
    DOI: 10.1016/j.landusepol.2025.107799
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    Keywords

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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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