Information infrastructure construction and firm export performance in China

Kuo Zhou, Qiaochu Wang, Yunqing Tao and Xiaofan Li

Research in International Business and Finance, 2024, vol. 70, issue PA

Abstract: This paper examines the causal relationship between information infrastructure construction and firms’ export performance. Adopting the "Broadband China" strategy as a quasi-natural experiment, we conduct a difference-in-differences estimation to demonstrate that the implementation of information infrastructure construction is a significant contributor to firms' export performance, an effect that withstands extensive robustness tests. We identify three main channels through which information infrastructure construction promotes firms' export performance: facilitating digital transformation, expanding firm production scale, and enhancing firm supply chain management capabilities. Particularly, the export response to information infrastructure construction is stronger for manufacturing firms, high-tech firms, and those firms with abundant human capital. Given significant ongoing information infrastructure investment in many emerging countries, this result provides important new information on the impacts of information infrastructure construction on exports.

Keywords: Information infrastructure construction; Broadband China; Firms’ export performance (search for similar items in EconPapers)
JEL-codes: F10 F14 L86 O33 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:70:y:2024:i:pa:s0275531924001041

DOI: 10.1016/j.ribaf.2024.102311

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