Open Access Journal Article

Research on the Effect of Digital Economy Development on Local Financial Pressure

by Baolin Song a ,  Xinrui Hu b,* ,  Hang Zhang c ,  Yanchen Gao d  and  Yuan Guo e
a
School of management, Hebei University, Baoding, China
b
School of management, Hebei University, Baoding, China
c
School of management, Hebei University, Baoding, China
d
Political Economics, King's College London, London, UK
e
School of Economics and Management, Cangzhou Jiaotong College, Cangzhou, China
*
Author to whom correspondence should be addressed.
JES  2023, 4; 1(1), 4; https://doi.org/10.58567/jes01010004
Received: 28 December 2022 / Accepted: 30 January 2023 / Published Online: 16 February 2023
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Abstract

The vigorous development of the digital economy provides a new research perspective for alleviating local financial pressure. Based on the provincial panel data from 2013 to 2020, the mediating effect model and threshold regression model were used to explore the effect and mechanism of the digital economy on local fiscal pressure. The research shows that the digital economy has a significant alleviating effect on local financial pressure by increasing fiscal revenue, and this alleviating effect has a threshold effect on entrepreneurial activity. From the perspective of dimension, the alleviating effect of the digital economy development environment on local financial pressure is better than that of digital industrialization and industrial digitization. From a regional perspective, the digital economy has the most apparent impact on the western region. In addition, the quantile regression results show that with the increase in financial pressure, the easing effect of the digital economy shows an inverted U-shaped change. Therefore, in order to effectively alleviate the financial pressure on local governments, China should continue to promote the development of the digital economy, take multiple measures to increase entrepreneurial activity, and encourage various regions to implement differentiated digital economy development strategies according to local conditions.

Keywords: Digital economy; Local financial pressure; Fiscal revenue; Degree of entrepreneurial activity;
Copyright: © 2023 by Song, Hu, Zhang, Gao and Guo. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Song, B.; Hu, X.; Zhang, H.; Gao, Y.; Guo, Y. Research on the Effect of Digital Economy Development on Local Financial Pressure. Journal of Economic Statistics, 2023, 1, 4. https://doi.org/10.58567/jes01010004
AMA Style
Song B, Hu X, Zhang H, Gao Y, Guo Y. Research on the Effect of Digital Economy Development on Local Financial Pressure. Journal of Economic Statistics; 2023, 1(1):4. https://doi.org/10.58567/jes01010004
Chicago/Turabian Style
Song, Baolin; Hu, Xinrui; Zhang, Hang; Gao, Yanchen; Guo, Yuan 2023. "Research on the Effect of Digital Economy Development on Local Financial Pressure" Journal of Economic Statistics 1, no.1:4. https://doi.org/10.58567/jes01010004
APA style
Song, B., Hu, X., Zhang, H., Gao, Y., & Guo, Y. (2023). Research on the Effect of Digital Economy Development on Local Financial Pressure. Journal of Economic Statistics, 1(1), 4. https://doi.org/10.58567/jes01010004

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