Smart Cities Are More Populous: Evidence from China

Abstract

This paper examines whether the widespread adoption of digital technologies in cities has increased attractiveness. Based on China’s smart-city construction (SCC), a pilot program aimed at promoting applications of digital technologies in cities, this paper finds that SCC has led to a higher urban population growth in smart cities in China. Two potential channels are suggested by mechanism analysis: improved ecological environment resulting from digital governance with respect to pollution and green production; essential digital information provided by internet users. Specifically, relying on difference-in-differences analysis, the results reveal that, from 2005 to 2017, SCC in China led to approximately 4.4% higher urban population growth in smart cities relative to non-smart cities. In particular, evidence from migrant survey data suggests that smart cities are more favorable destinations for distant migrants, and migrants with higher educational attainment and income. Our findings highlight the importance of digitalization in urban development.