How digital infrastructure enhances economic resilience: evidence from China

In recent years, downward pressure on the global economy has grown increasingly prominent due to uncertainty and disruptions. Enhancing economic resilience has become a focal point in academic research. This study employs an integrated econometric framework to investigate how digital infrastructure strengthens economic resilience, utilising panel data from 31 Chinese provinces spanning 2008 to 2023. The findings reveal that digital infrastructure enhances economic resilience by accelerating innovation commercialisation and fostering industrial diversification. Data factor allocation exerts a significant moderating effect, with higher data allocation amplifying the positive impact. Heterogeneity analysis reveals distinct threshold effects across industries: while the marginal effect of digital infrastructure on economic resilience exhibits increasing returns with higher data allocation in the secondary and tertiary industries, it demonstrates diminishing returns in the primary industry. The study provides empirical evidence for formulating digital empowerment strategies and industrial policies aimed at bolstering economic resilience. Notably, the diminishing marginal effect observed in the primary sector underscores the necessity for targeted strategies in agricultural digital transformation.