Addressing territorial digital divide through digital policy: lessons from China's national comprehensive big data pilot zones

Governments around the world have paid considerable attention to Information and Communication Technology for Development (ICT4D) initiatives. However, there is no clear evidence that current digitization strategies are meeting the expectations of inclusive and sustainable development. Based on panel data from Chinese prefecture-level cities, this paper constructs a quasi-natural experiment with the establishment of the National Comprehensive Big Data Pilot Zones (BDPZ) to examine whether and how big data-based digital policies can address the digital divide. The results show that the construction of the BDPZ significantly contributes to addressing the territorial digital divide. And this policy effect is influenced by factors such as regional innovation capacity, geographical location, and administrative authority. The mechanism analysis shows that the institution-led diffusion effect and administrative supply diffusion effect under the authoritative diffusion model, and the market-driven diffusion effect under the induced diffusion model are the intrinsic mechanisms of BDPZ in addressing the digital divide.