The Impact of Digital Government Construction on Entrepreneurial Vitality: Evidence from a Quasi-Natural Experiment in China

With the rapid advancement of digitalization, governments worldwide have actively promoted the digital transformation of public administration and service delivery. Taking China’s 2016 Implementation Plan for Promoting “Internet Plus Government Services” and Information Accessibility Pilot Programs as a quasi-natural experiment, this study employs a difference-in-differences (DID) model based on panel data from Chinese prefecture-level cities spanning 2010–2024 to examine the impact of digital government development on regional entrepreneurial vitality. The findings indicate that digital government development significantly enhances regional entrepreneurial vitality. Further analysis reveals substantial heterogeneity in this effect. From a regional perspective, the positive impact is more pronounced in western China and non-provincial-capital cities, whereas the effect is insignificant in eastern and central regions as well as provincial-capital cities. In terms of resource endowments, the effect is stronger in regions with higher levels of human capital accumulation, more developed digital inclusive finance, and larger market size. In addition, using data from Chinese A-share listed firms, this study explores the micro-level mechanisms through which digital government development stimulates entrepreneurial vitality. Specifically, digital government development can promote entrepreneurship through reducing firms’ institutional costs, lowering firm’s uncertain risk and improving firms’ access to financing.