Connecting opportunities: The role of digital infrastructure in household entrepreneurship under China’s ‘broadband China’ initiative

Qiuyue Guo, Jiaxing Wang and Yiwei Liu

Structural Change and Economic Dynamics, 2025, vol. 74, issue C, 738-749

Abstract: Household entrepreneurship significantly enhances resident well-being. This study analyzes China Family Panel Studies (CFPS) data from 2010–2020 to assess the "Broadband China" initiative (2014–2016). Using a difference-in-differences (DID) approach, it establishes a causal link between digital infrastructure expansion and increased household entrepreneurship. Results reveal that broadband access notably boosts entrepreneurial activities, verified by rigorous robustness checks. Key mechanisms include greater risk tolerance, improved entrepreneurial information access, enhanced credit financing, and stronger social capital. Digital infrastructure particularly favors opportunity-driven entrepreneurship over necessity-driven. These findings highlight digital infrastructure’s vital role in nurturing household entrepreneurial ecosystems.

Keywords: Digital infrastructure; Household entrepreneurship; Broadband China policy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:74:y:2025:i:c:p:738-749

DOI: 10.1016/j.strueco.2025.06.006

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