Abstract
Digitalization of government is a crucial strategy for enhancing national competitiveness and improving public services in numerous countries. This study introduced a quasi-natural experiment in China to evaluate the impact of a country’s digital government policy on entrepreneurship. Using city-level data and regression analysis, we find that implementing the policy increases the number of newly registered firms by 0.0028 per 10,000 working-age labours. The study also examines potential mechanisms for this effect and finds evidence that the policy improves government efficiency, reduces risk-seeking behaviours of local government, and promotes access to financial resources. This study’s findings contribute to research on digital government initiatives in developing countries and can inform future policy decisions.
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