Digital transformation: how digital infrastructure impacts urban livability in China

Building livable cities is a global urban development goal, but existing research has largely neglected the role of digital infrastructure in the construction of livable cities. Utilizing fixed effects models, instrumental variable, staggered difference-in-differences models, propensity score matching difference-in-differences models, and dynamic panel models, this paper examines the impact of digital infrastructure on urban liveability in 281 prefecture-level cities in China from 2005 to 2021. The research finds that digital infrastructure can improve urban liveability by enhancing green total factor productivity and digital technology upgrading. The impact is particularly significant in improving urban convenience, environmental comfort, and urban safety and stability. Further research indicates that the effect is moderated by economic growth and green finance. Heterogeneity tests reveal that the impact of digital infrastructure on urban liveability is more pronounced in central, northeastern, and western regions compared to eastern regions. These conclusions hold true after addressing endogeneity and conducting robustness tests. The findings provide empirical support for policies aimed at improving urban liveability.