An empirical analysis based on a panel threshold model of the effect of Internet development on the efficiency of Chinese government public service supply

Abstract

With the development of information technology, improving the efficiency of public services with the help of the Internet has become an important work of local governments. However, under different institutional environments, the impact mechanism of Internet development on the supply efficiency of government public services is still unclear. Based on China’s interprovincial panel data from 2011 to 2019, this paper constructs a threshold effect model, sets the institutional environment as the threshold variable, and empirically analyzes the impact of Internet development on the supply efficiency of government public services. The results show that the difference in regional institutional environment will lead to the obvious threshold effect of Internet development on the supply efficiency of government public services: When the institutional environment is poor, the role of Internet development on the supply efficiency of government public services is not significant. With the improvement of the institutional environment, the role of Internet development in promoting the supply efficiency of government public services gradually appears, but the marginal intensity of promotion weakens. Compared with existing studies that mostly use linear models, this paper incorporates the institutional environment into the complex relationship between Internet development and government public service supply efficiency, and clarifies the role of the institutional environment in the process of Internet development affecting government public service supply efficiency and the non-linear relationship among the three. This paper reveals the mechanism of Internet development affecting the supply efficiency of government public services under different institutional environments and provides a new perspective for solving the shortage of public services.