Studies on the influence of economic policy uncertainty on the growth of the digital economy

This paper outlines a theoretical mechanism for how economic policy uncertainty impacts the growth of the digital economy and argues that this uncertainty will have an incentive effect as well as a selection effect. In light of this, this paper conducts empirical research using panel data of prefecture-level cities and the uncertainty index of China's economic policy created by Baker et al. (2016). (1) Economic policy uncertainty is having a positive impact on the growth of the digital economy, according to the study. (2) The effects of uncertain economic policy on the digital economy vary widely. The promotion of the digital economy is negatively impacted by the uncertainty of economic policy in the eastern and southern regions, as well as in regions with large cities and high levels of economic development, but this impact is minimal or nonexistent in other regions.