Digital Infrastructure Development and Economic Growth: Firm-Level Evidence from Investment Efficiency
数字基础设施发展与经济增长：来自投资效率的企业层面证据
DOI:
https://doi.org/10.65967/siss.v44i1.126Keywords:
Digital infrastructure, economic growth, corporate investment efficiency, broadband China, management efficiencyAbstract
This study empirically investigates the impact of digital infrastructure development on corporate investment efficiency in the context of China’s Broadband China policy. Using a sample of Chinese listed firms from 2007 to 2021, the analysis employs a difference-in-differences approach, complemented by propensity score matching and instrumental variable techniques, to evaluate the policy’s effects on inefficient investment, overinvestment, and underinvestment. The results show that the Broadband China policy significantly improves corporate investment efficiency by alleviating inefficiencies, particularly those associated with excessive investment behavior. These effects are more pronounced in regions with relatively advanced infrastructure. Heterogeneity analysis further reveals substantial differences across locations, with firms situated in provincial capitals benefiting more from the policy than those in non-capital cities. Mechanism analysis indicates that improvements in managerial efficiency play a mediating role in the relationship between digital infrastructure development and corporate investment behavior. Overall, the findings provide both theoretical and empirical support for governmental initiatives aimed at strengthening digital infrastructure and promoting balanced regional economic development. Based on these results, the study proposes differentiated policy recommendations to enhance managerial efficiency through digital infrastructure development and to reduce regional disparities. Future research may extend the analysis by incorporating broader datasets and examining the effects of digital infrastructure on other firm-level outcomes, such as innovation performance and market competitiveness.
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