Heterogeneous Effects of ICT across Multiple Economic Development in Chinese Cities: A Spatial Quantile Regression Model

Abstract

Most previous articles estimate the effects of information communication technologies (ICTs) on economic growth average using national data without consideration of heterogeneity of ICT effects on cities across multiple economic development. The heterogeneity of ICT effects is confirmed to promote both the sustainability and equitableness of the whole cities. In order to investigate the heterogeneous effects of ICT between developed and less developed cities, a quantile spatial autoregressive (QSAR) model is applied to estimate coefficients at different quantiles while accounting for the spatial dependence of urban economy. We find significantly positive effects of ICT in local and neighboring cities after controlling the spatial dependence of urban economy. We have further found larger coefficients of ICT-related variables in cities with lower gross domestic product (GDP) per capital suggesting that digital dividend from ICT prefer the less developed cities over developed cities. Our conclusions indicate there would be “double dividend” from ICT, namely an improvement of both overall economic growth and balanced economic development among cities.