Exploring the effects of ICT on urbanization in China: evidence from a provincial spatial panel data model

Abstract The study investigates the intricate relationships between ICT and urbanization through the application of spatial panel data models. The analysis is based on data collected from 31 provincial cities in China over the period from 2012 to 2021. The emergence, diffusion, and influence of ICT exert dynamic and varied impacts on demographic, spatial, and economic aspects of urbanization. For estimation, a Spatial Durbin Model (SDM) is employed. The findings from the SDM indicate that ICT has both positive and negative effects on urbanization. Not all regions can swiftly reap the benefits of ICT, leading to an exacerbation of the digital divide and uneven development across regions. Nevertheless, less developed areas are actively seeking strategies to bridge the existing gap and leverage the advantages offered by ICT. Furthermore, the study reveals that the impacts of ICT on economic urbanization is significant. Key ICT indicators related to the ICT environment, application level, and achievement are crucial in driving urbanization development. The study serves as a valuable reference for policymakers assessing the multifaceted impacts of ICT on urbanization and formulating appropriate policies to enhance the positive effects of ICT.