Has transportation infrastructure development boosted the digital economy? – Evidence from core industries of digital economy in the Yangtze River Delta Region

The digital economy is regarded as the new economy in the 21st century, and transportation infrastructure is the key driving force of traditional economic growth. However, there are still fewer studies on both. In this paper, 41 cities in the Yangtze River Delta (YRD) region are studied from 2011 to 2020. Regression using the generalized spatial least squares method confirms the facilitating effect of transportation infrastructure on the digital economy. For every 1% rise in the construction level, the digital economy improves by 0.016. Among them, enhancing the attractiveness of the core industries of the digital economy for innovation, entrepreneurial activities, and investment is an important facilitating mechanism.Further, we find that transportation infrastructure's facilitating role is enhanced after crossing the threshold of digitalization. In addition, upgrading industrial structure (rationalization and advancement) strengthens this role. The above findings reveal the relationship between transportation infrastructure and the digital economy in China and provide a scientific basis for emerging economies to seek transportation planning policymaking and digital economy development.