Xiaonan Cao

1 month ago | nature.com | Hanyu Zhang |Kaiyue Zhang |Taihua Yan |Xiaonan Cao

This study reveals the spatial impact of digital infrastructure (DI) on regional GIE, introducing two novel perspectives of industrial agglomeration - its concentration (IC) and diversification (ID). The results reveal that local DI significantly improves local GIE but has a “siphon effect” on neighboring areas, leading to an inhibitory effect. Local DI promotes local IC and ID, which enhances local GIE. However, local DI’s spillover effects decrease neighboring areas’ IC and ID, which reduces neighbors’ GIE. The spatial impact of DI on GIE exhibits heterogeneity among different city sizes, regional technological levels, and traditional infrastructure development. As regions’ DI develops, the siphon effect of DI on neighboring GIE gradually diminishes and thus DI promotes long-term GIE. Introducing LE and PE, this study provides rich empirical evidence for understanding the relationship between DI and GIE.