Digital technologies and urban inclusive growth: An empirical study based on 70 large and medium-sized cities in China

Abstract

Abstract Inclusive growth is an economic model aimed at reducing inequality. Currently, China is undergoing a period of rapid digital transformation. Will digital technologies affect inclusive growth? This paper utilizes panel data from 70 large and medium-sized cities in China spanning from 2011 to 2022 to examine the impact of digital technology on urban inclusive growth. The examination considers both the economic growth and social equity effects of digital technology, and further discusses the impact channels on urban inclusive growth, particularly focusing on innovation and entrepreneurship. The results indicate that digital technology can promote inclusive urban growth; in other words, the higher the level of digital technology in cities, the better the inclusive growth. From the perspective of impact channels, digital technology enhances the inclusive growth of cities through urban innovation and entrepreneurial activities. Additionally, this paper finds that the role of digital technology in inclusive growth is more pronounced in cities with low human capital compared to those with high human capital. The impact of digital technology on inclusive urban growth is distinctly evident in the eastern region, but less so in the central and western regions.