Digital development and the improvement of urban economic resilience: Evidence from China

Abstract

Digital technologies are empowering economic and social development, which attracts scholars’ attention to the relationship between digitalization and economic resilience, However, the empirical analysis for different countries and stages of development are inconsistent, and the influencing mechanism need to be further explored. Using panel data for 284 prefecture-level cities in China from 2007 to 2020, this study examines the impact of urban digital development on economic resilience. The findings are as follows: (1) The increased digitalization significantly enhances the urban economic resilience, and this effect was more pronounced in eastern regions and large-scale cities. (2) The relationship between digitalization and economic resilience follows an inverted U-shape as population density increases. (3) The spatial effects show that increased digitalization has a significant positive effect on local economic resilience, but weakens the resilience of the surrounding areas. (4) The analysis of mechanism reveals that the positive impact of digitalization on the urban economic resilience is mainly achieved by improving the quality of the regional labor force and total factor productivity. The study provides theoretical and empirical evidence for accelerating the digital construction, fully releasing the digital dividend in order to strengthen economic resilience.