The impact of the national big data comprehensive pilot zone on digital economy development: evidence from China

This manuscript analyzes the impact of the implementation of National Big Data Comprehensive Pilot Zone(Pilot Zone) on digital economy development. The study utilizes panel data comprising municipalities directly under the central government, sub-provincial cities, and provincial capital cities from 2011 to 2019. By applying the propensity score matching (PSM) method and difference-in-differences (DID) approach, the results indicate that the establishment of Pilot Zones positively impacts the development of digital economy. This impact is found to be dynamic and continuous. Additionally, the analysis deminstrates that innovation capability moderates the relationship between the Pilot Zone policy and digital economy development. The heterogeneity analysis reveals that the effects of the Pilot Zone policy on digital economy development differ across cities in various geographical locations. This research provides theoretical and empirical references for digital economy development and policy pilot.