How does China's big data policy affect the digital economy of cities? Evidence from national big data comprehensive pilot zones

Abstract

Based on the panel data of 280 cities in China from 2011 to 2019, this paper examines the effects of big data policies on the digital economy development by using the national big data comprehensive pilot zones as a quasi-natural experiment. The findings of this paper are as follows. First, the big data policy significantly promotes China's digital economy development. Second, cities at a higher administrative level receive higher policy benefits than cities at a lower administrative level. Third, technological innovation and human capital are important ways for the big data policy to improve the development of the digital economy. The conclusions of this paper not only help to assess the effectiveness of big data policies and ensure the efficacy of policy implementation, but also provide policy support for local governments to fully explore the value of data elements and grasp the new opportunities for the digital economy development with the help of the pilot zones.

Keywords

• Big data policy
• Digital economy
• Difference-indifference
• Heterogeneity
• Kernel density
• Mediating effect