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Enterprise digital transformation stands as a pivotal driving force for urban economic sustainable development. Investigating the role of digital government policies in fostering urban economic growth through enterprise digital transformation is essential for guiding governments in a more targeted pursuit of urban development policies. Utilizing the establishment of the urban big data administration bureau as a quasi-natural event and leveraging data on A-share listed companies from 2012 to 2022, this study scrutinizes whether the construction of digital government effectively stimulates enterprise digital transformation and, consequently, promotes urban economic development. Benchmark regression results unequivocally demonstrate that digital government policies significantly propel enterprise digital transformation. Mechanism analysis elucidates that digital government facilitates enterprise digital transformation by enhancing the urban business environment and mitigating the influence of information search costs. Heterogeneity analysis underscores the influence of factors such as the city’s area location, administrative level, and economic development level on policy effects. Notably, the impact of digital government policies is more pronounced in central and western cities, provincial capitals, and cities with lower economic development. Economic consequence analysis reveals that digital government policies play a crucial role in fostering urban economic sustainable development by fostering the digital transformation of enterprises.
Li et al. (Sun,) studied this question.