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Digital Technology, Virtual Agglomeration of Producer Services and Resilience of Urban Economy

In: Proceedings of the 2024 6th Management Science Informatization and Economic Innovation Development Conference (MSIEID 2024)

Author

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  • Wenhao Du

    (Harbin University of Commerce, School of Economics)

Abstract

Drawing on digital economy theory, geographic and virtual agglomeration phenomena, and an urban economic resilience framework, we formulated a research hypothesis and designed an analysis system incorporating bidirectional fixed-effect panel, panel threshold regression, spatial Durbin (SDM), and intermediary effect test models. Using 2015–2021 panel data from 30 provinces, we empirically examined the digital economy's influence on producer services’ virtual agglomeration and its effects on urban economic resilience. Key findings include: (1) The digital economy significantly boosts producer services’ virtual agglomeration and urban economic resilience. (2) It also exhibits positive spatial spillover effects, where local resilience is positively impacted by neighboring regions’ digital economy development. A threshold effect is observed, with higher digital economy development levels leading to more pronounced resilience improvements. Regionally, the eastern region experiences significant boosts, while the central and western regions show weaker effects. (3) Producer services’ virtual agglomeration significantly enhances urban economic resilience. (4) Producer services’ virtual agglomeration acts as an intermediary, enhancing urban economic resilience both directly through the digital economy and indirectly through its intermediary role.

Suggested Citation

  • Wenhao Du, 2025. "Digital Technology, Virtual Agglomeration of Producer Services and Resilience of Urban Economy," Advances in Economics, Business and Management Research, in: Manhui Huang & Vilas B. Gaikar & Md Rabiul Islam & Ivan Krumov Todorov (ed.), Proceedings of the 2024 6th Management Science Informatization and Economic Innovation Development Conference (MSIEID 2024), pages 778-789, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-676-5_75
    DOI: 10.2991/978-94-6463-676-5_75
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