Market Accessibility, Agglomeration, and Spatial Location of Digital Economy Enterprises

Abstract

Based on the business registration data and city-level data, this article uses a negative binomial regression model to study newly established digital economy enterprises in 283 cities from 2006 to 2020. We explore how market accessibility and agglomeration economy affect the location selection of digital economy enterprises. According to our research, demand accessibility plays an important role in the location selection of digital economy enterprises. However, these enterprises no longer rely on supply chains and logistics like traditional manufacturing industries. Moreover, agglomeration economy still has a significant impact on the location selection of digital economy enterprises, as these enterprises prefer to locate in cities with existing similar industry clusters. The digital product manufacturing industry and the digital-factor-driven industry still rely on accessibility to manage supply chains, while for digital efficiency improvement industries, being closer to the central city brings greater cost pressure, negatively impacting entry into the market. Within a province, road accessibility yields a profound effect on the location selection of digital economy enterprises; at a longer distance scale, improvements in demand accessibility due to road and railway connections will promote the entry of digital economy enterprises. Based on these findings, this article proposes targeted policy recommendations for local governments to promote the development of the digital economy.

Keywords: digital economy enterprises, spatial location, market accessibility, agglomeration economy