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Digital Economy, Openness, and Regional Economic Growth

Author(s)

Yining Li, Kai Wang

Affiliation(s)

School of Business, Jiangsu Ocean University, Lianyungang, Jiangsu, China

Abstract

Utilizing provincial panel data from 2011 to 2021, this study empirically investigates the distinct roles of the digital economy and economic openness in driving regional growth across China. The findings reveal that digital advancement serves as a robust and consistent catalyst for economic expansion. In contrast, the impact of openness exhibits a non-linear, threshold-dependent pattern. Heterogeneity analysis further indicates that the positive effect of the digital economy is significantly amplified in regions with advanced technological capability and upgraded industrial structures. Concurrently, an inverted U-shaped relationship between openness and growth is specifically identified in areas with lower innovation capacity and in those with more mature industrial frameworks. Based on these insights, the study proposes differentiated strategy recommendations aimed at fostering sustainable and balanced regional development.

Keywords

Digital Economy; Openness; Regional Economic Growth

References

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