Digital economy, government efficiency, and regional administrative monopolies: Evidence from China

Abstract

In this study, we utilized Chinese panel data covering 30 provincial-level administrative regions from 2000 to 2022 to examine the effects of digital economic development on regional administrative monopolies. The findings demonstrate the following. (1) The digital economy significantly curbs regional administrative monopolies, a conclusion supported by several robustness tests, including those addressing endogeneity. (2) The suppressive effect of the digital economy on regional administrative monopolies is pronounced in the eastern region but less evident in the central and western regions, suggesting regional imbalances. (3) Further analysis using threshold effects indicates the existence of a dual threshold for the influence of the digital economy on regional administrative monopolies. (4) Mechanism tests reveal that government efficiency partially mediates the digital economy's impact on restraining regional administrative monopolies.