Has smart city transition elevated the provision of healthcare services? Evidence from China's Smart City Pilot Policy

Abstract

This paper endeavors to identify the causal effects between the smart city transition and the provision of healthcare services while uncovering potential pathways of influence. This study first constructs a logical analytical framework and posits five hypotheses for examination. Subsequently, leveraging the quasi-natural experiment of the China Smart City Pilot Policy (CSCPP), empirical tests are conducted utilizing a Difference-in-Differences (DD) two-way fixed effects model. The findings suggest that the CSCPP has significantly enhanced the provision of healthcare services. Even after addressing the formidable challenges of endogeneity, sample self-selection, and spatial spillovers, the conclusion remains robust. Mechanism tests indicate that the CSCPP primarily operates through two avenues: augmenting human resources and institutional services. Heterogeneity tests reveal that the efficacy of CSCPP is heightened in cities boasting administrative approval service centers, experiencing diminished financial constraints, and exhibiting elevated healthcare provision levels and situated in the eastern region. The theoretical and empirical analysis of this paper demonstrates that smart city transitions can facilitate the enhancement of healthcare services. The potential contribution of this paper is to enrich the conceptualization of governance frameworks for smart city transition while providing empirical evidence from China.