Digital government and corporate investment: Effects and mechanisms

Bofan Liu, Ruifei Guo and Huaqin Shi

Economic Modelling, 2025, vol. 151, issue C

Abstract: Through a textual analysis of government work reports, this paper measures the level of digital government construction and examines its impact on corporate investment, along with the underlying mechanisms. The findings indicate that digital government development significantly promotes corporate investment by reducing uncertainty, administrative burdens, and information matching costs faced by enterprises. Moreover, the results suggest that digital policy initiatives, along with firms’ levels of digitalization and automation, exert a synergistic effect that amplifies this positive impact. These findings highlight the channels through which digital government influences corporate investment and underscore the importance of digital infrastructure development and the advancement of enterprise-level digital and automated capabilities.

Keywords: Digital government; Corporate investment; Uncertainty; Administrative burden; Transaction cost (search for similar items in EconPapers)
JEL-codes: D23 E22 H11 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:151:y:2025:i:c:s0264999325001841

DOI: 10.1016/j.econmod.2025.107189

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