Abstract Driven by digitalization and Internet development, the sharing economy model challenges traditional government regulation and requires new rule of law concepts and methods. The article uses structural equation modeling (SEM) and multiple linear regression analysis, and we empirically analyze the data of A-share listed companies between 2012 and 2022. It is found that the development of the sharing economy has a significant positive impact on government regulation and public services. In particular, for every 1% increase in the level of sharing economy development, the government’s regulatory capacity increases by 0.854%, while the public service capacity increases by 0.636%. This indicates that the sharing economy enhances the government’s regulatory capacity and promotes the innovation and expansion of public services. In addition, the regional Analysis shows that the sharing economy has a more significant impact on administrative law governance in the eastern and northeastern regions. In contrast, the effect in the western region is not important. In summary, this study proves the sharing economy’s importance in enhancing administrative law governance and provides empirical evidence for policy makers.
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