Digital economy development and enterprise investment – a quasi-natural experiment from the pilot strategy of “broadband China”

This article analyzes the impact of digital economy development on enterprise investment by using the “Broadband China” strategy as an exogenous shock and applying a multi-period difference-in-differences (DID) model to panel data from 2010 to 2020. The results indicate that the digital economy significantly promotes enterprise investment by improving R&D, obtaining more financing from banks, and enhancing internal control. Furthermore, the impact of the digital economy on enterprise investment varies significantly among enterprises that have a high R&D expenditure, are state-owned, large-scale, lower financially constrained, or capital-intensive. The conclusion is supported by a series of robustness tests. This study clarifies the role and influence of government-led digital economy infrastructure construction on micro-enterprise investment decisions and provides recommendations for boosting the development of the digital economy and China’s enterprise investment development.