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| The Impact of Digital Economy Development in Provincial Capital Cities : Spillover or Siphon? |
| Liu Yaobin1,Hu Weihui1,Luo Kang2,Zhuo chong3,Li Shuoshuo1 |
| (1.School of Economics and Management, Nanchang University, Nanchang 330031, China; 2.School of Economics Hainan University,Haikou 571000,China;3.School of Social Development and Public Policy, Fudan University, Shanghai 200433, China) |
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Abstract As the main spatial carrier of economic and social development, many cities in China have successively introduced the strategy of"strengthening provincial capitals" in recent years. Then, with the implementation of this strategy, it may bring the spillover of provincial capital city resources,promote the development of local digital economy,and also lead provincial capital cities to absorb a large amount of digital resources, forming the digital economy gap between provincial capital cities and local cities. Do provincial capitals gather digital resources because of their own advantages of economic size, population size, and capital policy, thus producing a "siphon effect" on surrounding cities; or do they make full use of their own resource sharing and joint construction mechanism to drive the economic development of surrounding local cities, and then realize rapid growth together? This problem is crucial for the implementation of the current strategy of "strengthening provincial capitals" and the coordinated development of regions.#br#There is a lack of a standard evaluation index system in the existing research, and no academic consensus on the development measurement of the digital economy. Therefore, this paper selects indicators from the perspective of output and input, constructs a theoretical model that can reveal the "spillover effect" and "siphon effect" of the development of digital economy in provincial capital cities, and effectively avoids the controversy about digital economy evaluation. In terms of the externality characteristics of the digital economy, scholars believe that the digital economy can have an impact on the surrounding areas through technology diffusion and knowledge spillover. The digital economy has promoted the flow of related labor and capital, and accelerated the formation of industrial specialization among regions. The digital economy promotes the communication between regions through mutual assistance and sharing mechanism. Therefore, this paper further tries to explain the influence of digital economy on local cities by using division of labor mechanism, learning mechanism and sharing mechanism.#br#The panel fixed model is used to study the spillover effect of digital economy development in provincial capital cities on other cities in the province based on city panel data from 2011 to 2019 . The empirical results show that (1) the development of digital economy in provincial capital cities has improved the development of digital economy in local cities, and the spillover effect is obvious, and a series of endogenous and robustness tests have confirmed this view; (2) the north-south gap between the spillover effect of digital economy in provincial capital cities is not obvious, which mainly occurs in the eastern and central regions; the spillover effect in medium-sized cities is significantly higher than that of small-size and large-size cities; (3) the spillover effect of digital economy in provincial capitals cannot be well explained by the division of labor mechanism. This spillover effect is mainly realized through the learning mechanism and partly through the sharing mechanism.#br#With a focus on the externalities of digital economy, this study firstly discusses the influence of provincial capitals on local cities from the strategy of "strengthening provincial capitals", thus expanding the new perspective of related research on digital economy. Then the labor input, capital input and income-output indicators are included to construct a theoretical model of "spillover effect" and "siphon effect" of digital economy in provincial capital cities, and it reveals the function mechanism of provincial capital cities on the development of digital economy in local cities. Thirdly since cities are the best carries for the implementation of digital economy policies, this study uses the urban panel data to explore the influence of provincial capitals on local cities, which is realistic and deepens the existing literature.#br#The results of this paper have certain guiding significance for the development of digital economy in provincial capitals. The government should adhere to the implementation of the "strengthening provincial capitals" strategy, give full play to the leading role of provincial capitals demonstration radiation. It is also essential to hold onto the principle of adapting measures to local conditions, and give full consideration to the differences in the development of digital economy in different regions. Besides the government ought to clarify the development orientation of digital economy in provincial capitals and local governments, strengthen the learning and sharing mechanism of digital economy, and build a complete industrial chain.#br#
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Received: 26 August 2022
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