Entrepreneurship as a catalyst for digital economic complexity: an empirical analysis of China’s provincial data

Xiaohong Ma, Baogui Xin, Wei Peng and Jiwon Kwon

Post-Communist Economies, 2025, vol. 37, issue 5, 429-456

Abstract: This study investigates entrepreneurship’s role as a catalyst for digital economic complexity, using Chinese data. Addressing a gap in digital economics literature, particularly in post-communist contexts, we introduce novel measures of digital economic complexity, moving beyond traditional economic indicators. Our findings reveal that entrepreneurship significantly and positively influences digital economic complexity. This impact, however, is indirect, mediated through the promotion of ICT talent aggregation and active technology transactions, suggesting a crucial pathway for entrepreneurship’s influence. Furthermore, the effect exhibits heterogeneity. It is notably stronger within the Yangtze River Economic Belt and in provinces characterised by high levels of financial inclusion and industrial concentration, highlighting the importance of regional and structural factors. This research contributes a new framework for assessing digital economic complexity and provides empirical evidence resolving the debate on entrepreneurship’s digital economic impact, demonstrating entrepreneurship’s vital role in shaping it, specifically in a rapidly evolving, post-communist setting like China.

Date: 2025
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DOI: 10.1080/14631377.2025.2478357

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