Broadband Expansion and Urban Decline: Evidence from China’s ‘Broadband China’ Pilot Policy”

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Key Points

This research investigates the impact of digital infrastructure on urban shrinkage in China's cities.
Utilized a difference-in-differences framework to assess the effects of the 'Broadband China' pilot policy.
Constructed a multidimensional urban shrinkage index for prefecture-level cities from 2007 to 2021.
Analyzed mechanisms involved in mitigating urban shrinkage, including talent agglomeration and environmental governance.
Digital infrastructure significantly reduces urban shrinkage, with notable effects in neighboring cities.
Talent agglomeration decreases migration costs for skilled workers, facilitating urban retention.
Enhanced environmental monitoring improves governance, contributing to lower air pollution levels.

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Examines digital infrastructure's role in combating urban shrinkage in Chinese cities, suggesting vital implications.

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Wang et al. (2026) studied this question.

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