Evaluating the Policy Effect of the “Broadband China” Strategy —From the Perspective of Urban Entrepreneurship Vitality

Abstract

The implementation of the “Broadband China” strategy has provided a solid foundation for the construction and development of China’s information network. This paper utilizes panel data from Chinese prefecture-level cities from 2012 to 2020, establishes a multi-period difference-in-differences model to evaluate the policy effects of the “Broadband China” strategy, employs a two-stage method to study its mediating effects, and conducts a heterogeneity analysis. The study finds that the implementation of the “Broadband China” strategy has significantly enhanced urban entrepreneurial vitality. Specifically, the “Broadband China” strategy enhances urban entrepreneurial vitality by improving the level of digital financial inclusion and the application of information technology in cities. The results of the heterogeneity analysis show that cities with lower administrative levels, higher degrees of marketization, and superior business environments exhibit the most significant enhancement in entrepreneurial vitality due to the promotion of the “Broadband China” strategy. Based on these conclusions, this paper argues that the popularization of internet infrastructure can enhance urban entrepreneurial vitality, and proposes relevant policy recommendations for popularizing internet infrastructure in regions with different economic development levels to further boost urban entrepreneurial vitality.