Digital Infrastructure, SME E-Commerce, and Economic Growth: Evidence from China’s Platform Economy

Digitalization is increasingly central to economic growth strategies, yet robust macro-level evidence on the role of SME-led e-commerce remains limited. Drawing on the Resource-Based View, this study examines how SME digitalization, internet finance, and platform-based activities influence regional economic growth in China, and how these effects depend on digital infrastructure readiness (DIR). We construct an annual panel of 30 provincial-level regions in China over 2015–2024 and estimate dynamic relationships using two-step system GMM to address endogeneity and growth persistence. The results show that SME digitalization, supply-chain efficiency, mobile payment penetration, tech-driven employment growth, platform-economy contribution, and DIR all exert statistically significant positive effects on GDP growth. Quantitatively, a 10-percentage-point increase in SME digitalization is associated with approximately 0.3-percentage-point higher regional GDP growth, while a 10-point increase in DIR corresponds to about 0.4-percentage-point higher growth. Moderation analyses reveal that DIR significantly amplifies the growth effects of e-commerce expansion, mobile payments, and digital marketing, whereas its moderating role is weaker or insignificant for cross-border payments and supply-chain efficiency. These findings reconceptualize digitalization as a coordinated bundle of complementary resources and position DIR as a critical enabling capability for translating SME digital transformation into macroeconomic growth. The study offers policy-relevant evidence for targeting infrastructure investment and digital-economy strategies in emerging platform economies.

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Publication Details

Journal
Economies
Published
2026-01-28
DOI
https://doi.org/10.3390/economies14020040
Citations
1
Primary Topic
E-commerce and Technology Innovations
Type
article
Field-Weighted Citation Impact
47.96
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article

Digital Infrastructure, SME E-Commerce, and Economic Growth: Evidence from China’s Platform Economy

Tengyue Hao, Rajah Rasiah, Sohaib Mustafa
1 citations
Economies
E-commerce and Technology Innovations
47.96
article

Digital Infrastructure, SME E-Commerce, and Economic Growth: Evidence from China’s Platform Economy

Tengyue Hao, Rajah Rasiah, Sohaib Mustafa
article en
1 citations

Abstract

Digitalization is increasingly central to economic growth strategies, yet robust macro-level evidence on the role of SME-led e-commerce remains limited. Drawing on the Resource-Based View, this study examines how SME digitalization, internet finance, and platform-based activities influence regional economic growth in China, and how these effects depend on digital infrastructure readiness (DIR). We construct an annual panel of 30 provincial-level regions in China over 2015–2024 and estimate dynamic relationships using two-step system GMM to address endogeneity and growth persistence. The results show that SME digitalization, supply-chain efficiency, mobile payment penetration, tech-driven employment growth, platform-economy contribution, and DIR all exert statistically significant positive effects on GDP growth. Quantitatively, a 10-percentage-point increase in SME digitalization is associated with approximately 0.3-percentage-point higher regional GDP growth, while a 10-point increase in DIR corresponds to about 0.4-percentage-point higher growth. Moderation analyses reveal that DIR significantly amplifies the growth effects of e-commerce expansion, mobile payments, and digital marketing, whereas its moderating role is weaker or insignificant for cross-border payments and supply-chain efficiency. These findings reconceptualize digitalization as a coordinated bundle of complementary resources and position DIR as a critical enabling capability for translating SME digital transformation into macroeconomic growth. The study offers policy-relevant evidence for targeting infrastructure investment and digital-economy strategies in emerging platform economies.

EconomiesVol. 14(2)
University of Malaya (MY), Beijing University of Technology (CN)
Decent work and economic growth
Openalex Percentile: Top 1%
E-commerce and Technology Innovations
47.96
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Digital Infrastructure, SME E-Commerce, and Economic Growth: Evidence from China’s Platform Economy — Tengyue Hao, Rajah Rasiah, et al. · Economies (2026) | TGRS Research Map | TGRS