How does government data openness affect cross-regional capital flow? Evidence from Chinese-listed firms’ off-site investment

Yongguang Long, Xiaoru Zhang and Long Wang

Economic Modelling, 2025, vol. 152, issue C

Abstract: Transaction cost theory posits that information is a key factor in facilitating enterprise decision-making, yet its validity in the digital age remains to be tested. China's government data openness provides an opportunity to do so. This study examines the impact of government data openness on cross-regional capital flows using data from Chinese-listed companies between 2009 and 2022. We find that government data openness significantly facilitates cross-regional capital flows, with effects particularly pronounced for labor-intensive firms, firms with stronger governance capacity, and those with weaker government–business ties. Mechanism analysis shows that open government data promote capital movement by improving the external business environment and reducing institutional transaction costs. Further, we find that higher-quality data openness and greater local government fiscal transparency amplify these positive effects on cross-regional capital flows.

Keywords: Open government data; Data element; Capital flow; Unified national market (search for similar items in EconPapers)
JEL-codes: D22 D24 G14 H41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:152:y:2025:i:c:s0264999325002846

DOI: 10.1016/j.econmod.2025.107289

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