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Effects of digital transformation of logistics on urban innovation in China: a spatial econometric analysis

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  • Zheng Li
  • Haoyun Meng

Abstract

In this paper, we investigate the influence of digital transformation of logistics (DTL) on urban innovation. Based on the proposed theoretical model, we use the dynamic spatial Durbin model as the empirical approach to examine this relationship. Our findings suggest that DTL play a significant role in augmenting innovation, manifesting through both its own direct and spillover effects from geographically neighbouring cities. Moreover, in the long run, the latter emerges as a stronger driver of innovation. The dynamics revealed in the temporal heterogeneity analysis have some implications for the role of agglomeration economies in responding to different shocks. Our key finding highlights the benefit of the geographic concentration of economically comparable cities, in terms of the enhanced resilience against the external shock of the COVID-19 pandemic. Additionally, this study sheds light on one central mechanism driving innovation within this context, suggesting that DTL improves knowledge recombination and ultimately foster innovation.

Suggested Citation

  • Zheng Li & Haoyun Meng, 2025. "Effects of digital transformation of logistics on urban innovation in China: a spatial econometric analysis," Applied Economics, Taylor & Francis Journals, vol. 57(51), pages 8450-8470, November.
    • Handle: RePEc:taf:applec:v:57:y:2025:i:51:p:8450-8470
    DOI: 10.1080/00036846.2024.2399819
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