The impact of digital government policy on entrepreneurial activity in China

Digitalization of government is a crucial strategy for enhancing national competitiveness and improving public services in numerous countries. This study introduced a quasi natural experiment in China to evaluate the impact of a country's digital government policy on entrepreneurship. Using city-level data and regression analysis, we find that implementing the policy increases the number of newly registered firms by 0.0028 per 10,000 working-age labours. The study also examines potential mechanisms for this effect and finds evidence that the policy improves government efficiency, reduces risk seeking behaviours of local government, and promotes access to financial resources. This study's findings contribute to research on digital government initiatives in developing countries and can inform future policy decisions.& COPY; 2023 Economic Society of Australia, Queensland. Published by Elsevier B.V. All rights reserved.