Digital Technology Innovation Empowers Inter-regional Capital Flows and Discussion on the Construction of a Unified National Market
The new breakthroughs in digital technology itself can improve the governance effi-ciency of the internal capital market of the group and promote the cross regional flow of corporate capital.This paper explores the impact of digital technology innovation on cross regional capital flow of enterprises,based on evidence of digital patents and the establishment of subsidiaries in dif-ferent locations from 2007 to 2021.Research indicates that digital technology innovation drives the inter-regional capital flows.Mechanism test has found that digital technology innovation can pro-mote the profit sharing of subsidiaries in different regions back to the parent company,thereby im-proving the level of cross regional capital flow of enterprises.Heterogeneity analysis reveals that the empowering effects of digital technology innovation are more evident in the digital industrial sec-tors,non-digital economic sectors,and in regions outside the same economic circle with a lower de-gree of market segmentation.Further analysis finds that,for enterprises without digital technology innovation,digital strategies can also help them develop across regions,but the promotion effect is not as strong as the former.In addition,while digital technology innovation promotes capital flow to more developed regions,it also helps to reduce the economic growth gap between cities where subsidiary and parent companies are located.This article reveals the important role of digital tech-nology innovation in facilitating cross regional capital flow for enterprises from the perspective of remote development,tests the practical results of the geographical dual economy theory in China,and provides important empirical evidence for the formulation of digital technology innovation poli-cies and the consolidation of the construction of a unified national market in China.
digital technology innovationinter-regional capital flowscross-regional subsidiar-iesa unified national market
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