ISSN: 2222-6990
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This research explores how government financial support impacts the growth of the digital economy, emphasizing the influence of industrial structure as a moderating factor and the variation across different regions. Analyzing panel data from 30 Chinese provinces (2013–2022), the Two-Way Fixed Effects (TWFE) model demonstrates that government fiscal expenditures on science and technology significantly boost digital economic growth. Robustness tests confirm the reliability of these findings, and endogeneity issues are addressed by utilizing lagged government financial support as an instrumental variable. The analysis identifies regional disparities, with the eastern region demonstrating the most pronounced policy effects, followed by the central and western regions, reflecting variations in digital infrastructure and resource utilization. Furthermore, the moderating effect analysis underscores that a higher share of the tertiary sector strengthens the effectiveness of financial support, emphasizing the need for optimizing industrial structures. These findings provide valuable insights for promoting balanced and sustainable digital economic growth, addressing regional inequalities, and advancing a modern economic system.
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