Digital infrastructure and regional economic disparities: Evidence from the broadband China strategy

The Broadband China Strategy (BCS), a key national digital infrastructure initiative, significantly impacts regional economic disparities in China. Using panel data from 282 prefecture-level cities (2008-2021) and a Difference-in-Difference-in-Difference (DDD) approach, the study finds that BCS reduces the regional economic gap by 0.82% in pilot cities relative to non-pilot cities. The strategy narrows disparities through technology adoption, human capital upgrading, and coordinated regional development. Short-term heterogeneity exists, with some cities initially experiencing temporary divergence due to uneven readiness, but convergence dominates in the long run. BCS also generates positive spatial spillover effects, enabling neighboring non-pilot cities to benefit from pilot cities’ digital infrastructure. Effects are particularly pronounced in underdeveloped western regions, where digital platforms accelerate technology diffusion, institutional innovation, and industrial coordination. Overall, findings demonstrate that digital infrastructure can play a critical role in reducing regional inequalities and provide valuable policy insights for inclusive growth and balanced regional development.