Local Digital Economic Growth, Enterprise Digital Transformation, and Digital Dividends: Evidence from China

Achieving digital transformation in enterprises is vital for advancing the digital economy. Using the World Bank’s China Enterprise Survey data, this study investigates how local digital economic growth impacts enterprise transformation. Findings suggest that higher local digital growth significantly boosts enterprise transformation, thereby improving short-term operations and long-term innovation. Remarkably, threshold regression reveals a stronger impact on larger enterprises and those with higher human capital. Additional analyses demonstrate that effective access to digital dividends enhances enterprises’ production, R&D, and management. These results offer guidance for local governments, supporting digital shifts and helping enterprises tailor transformation strategies.