Information and communication technology (ICT), digital divide and urbanization: Evidence from Chinese cities

Information and communication technology (ICT) is a key driver of urbanization but can also create the digital divide that hinders urbanization. The study aims to explore the dynamic relationship among ICT, the digital divide and urbanization in China. Employing data collected from prefecture-level cities in 2017, this study first constructs a composite urbanization index through principal component analysis (PCA), then applies geographically-weighted regression (GWR) model and partial least squares structural equation modeling (PLSSEM) to probe the effects of ICT on overall urbanization. The results suggest that ICT positively affects urbanization and directly improves urbanization levels and efficiency. The application of mobile phones is an indispensable tool for future urban development. However, there are digital divides among areas. Less-developed cities lag behind well-developed ones due to their poor basic conditions and low-levels of ICT perception among residents. Therefore, knowing how to boost ICT development, narrow the digital divide and promote urbanization is of great importance. The essential role of the government in urbanization and technological progress emphasized, and it is believed that government-led ICT-based urbanization can alleviate the digital divide and achieve balanced regional development.