Does digital infrastructure promote individual entrepreneurship? Evidence from a quasi-natural experiment on the “Broadband China” strategy

Xing Li, Gang Yang, Tihang Shao, Dan Yang and Zimin Liu

Technological Forecasting and Social Change, 2024, vol. 206, issue C

Abstract: Digital infrastructure construction provides new channels and a nurturing environment for individual entrepreneurship and is considered a significant factor in stimulating individual entrepreneurship. This study explored the impact of digital infrastructure construction on individual entrepreneurship and its mechanisms. The primary data used in this study were obtained from the China Labor-force Dynamics Survey (CLDS). The relevant data were analyzed using a time-varying difference-in-differences (DID) model. The results indicate that the construction of digital infrastructure can significantly promote individual entrepreneurship by enhancing imitation effects, improving optimistic expectations, and creating flexible work arrangements. Moreover, its promoting effect is more pronounced among individuals with Adverse Childhood Experiences (ACE), females, and low-income families. The study's results reveal the connection between digital infrastructure construction and entrepreneurship, providing policy recommendations and insights to help government departments achieve goals such as digitalization and common prosperity. This study also contributes to the Chinese experience in the global analysis of entrepreneurship.

Keywords: Digital infrastructure; Entrepreneurship; Imitation effect; Optimistic expectation; Flexible work; China Labor-force Dynamics Survey (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:206:y:2024:i:c:s0040162524003512

DOI: 10.1016/j.techfore.2024.123555

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