Impact of data factor and data integration on economic development: Empirical insights from China

Zhaopeng Chu, Xin Chen and Jun Yang

Telecommunications Policy, 2025, vol. 49, issue 8

Abstract: Data factor is the foundation of digital empowerment for economic development. This paper studies data factor and its integration with other production factors by theoretically deducing and empirically testing its impacts on economic development. Working with provincial level data from China, the investigation reveals a positive and nonlinear impact of data factor on economic development. When applied at an advanced level, data factor can transform capital and labor into digital production factors, which boost economic development. The effects of data and digital production factors vary across regions and industries. Mechanism analysis shows that the effects of data factor and digital production factors on economic development are mediated by total factor productivity. These results offer clear evidence that all countries can benefit from digital transformation of the economy.

Keywords: Data factor; Digital production factors; Economic development; Total factor productivity (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.telpol.2025.103004

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