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Connecting opportunities: The role of digital infrastructure in household entrepreneurship under China’s ‘broadband China’ initiative

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  • Guo, Qiuyue
  • Wang, Jiaxing
  • Liu, Yiwei

Abstract

Household entrepreneurship significantly enhances resident well-being. This study analyzes China Family Panel Studies (CFPS) data from 2010–2020 to assess the "Broadband China" initiative (2014–2016). Using a difference-in-differences (DID) approach, it establishes a causal link between digital infrastructure expansion and increased household entrepreneurship. Results reveal that broadband access notably boosts entrepreneurial activities, verified by rigorous robustness checks. Key mechanisms include greater risk tolerance, improved entrepreneurial information access, enhanced credit financing, and stronger social capital. Digital infrastructure particularly favors opportunity-driven entrepreneurship over necessity-driven. These findings highlight digital infrastructure’s vital role in nurturing household entrepreneurial ecosystems.

Suggested Citation

  • Guo, Qiuyue & Wang, Jiaxing & Liu, Yiwei, 2025. "Connecting opportunities: The role of digital infrastructure in household entrepreneurship under China’s ‘broadband China’ initiative," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 738-749.
    • Handle: RePEc:eee:streco:v:74:y:2025:i:c:p:738-749
    DOI: 10.1016/j.strueco.2025.06.006
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