Research On The Impact Of Smart City Construction On Business Environment

Nowadays,China has entered the new development stage,in face of Covid-19 and complex international environment,the 20 th CPC National Congress report pointed out that Chine should accelerate the establishment of a "dual circulation" development pattern in which domestic economic cycle plays a key role while international economic cycle remains its extension and supplement.Nowadays,"black swan" incidents occur frequently,and the uncertainty of the international situation is increasing,underscoring the importance of the domestic economic cycle.Supply-side Reform should be organically combined with expanding domestic demands.Business environment optimization,as a key proposition of Comprehensively Deepening Reforms,is a key tool to stimulate the vitality of enterprises,one of the main parts of the market,and is necessary to promote internal circulation from the supply side.On the other hand,with the development of informatization,technological governance plays a leading role in social change.The outbreak of Covid-19 has posed new challenges to the digital construction of cities.Smart city construction,as a necessary path to modernize urban governance,plays a leading role in the political,economic,social,cultural and ecological construction of cities.Whether smart city construction has an impact on the business environment and which path it follows,this is the question raised here.After extensive reading of relevant literature,this paper presents a theoretical analysis of the impact of smart city construction on the business environment from the perspective of transaction cost theory,and presents that smart city construction can optimize the business environment by improving government information disclosure,solving the problem of information asymmetry,and reducing the information search cost of companies.Smart city construction can simplify the complex process of business start-up and operation through the construction of egovernment system,improve the efficiency of government work,reduce the cost of enterprises and optimize the business environment.Smart city construction can also play a positive role in the business environment through talent aggregation,which meets the needs of enterprises for intelligentized construction of office and promotes the development of emerging industries.On the basis of theoretical analysis,this paper selects panel data of 160 cities in China from 2009 to 2020,makes smart city construction a quasi-natural experiment,and establishes a multi-period DID model to prove the impact of smart city construction on the business environment.The results reveal that there is a significant positive impact of smart city construction on the business environment.Due to differences in the location and scale of cities,the degree of the impact is heterogeneous,and the impact is more significant in cities in the eastern and central part of China,but not significant in the western part.The effect of smart city construction on the optimization of the business environment is more significant in large and medium-sized cities than in small cities.The mechanism test finds that smart city construction optimizes the business environment by promoting government information publicity,improving government efficiency and talent aggregation.Finally,through the results of theoretical and empirical studies,this paper puts forward targeted suggestions on optimizing the business environment.Firstly,formulate detailed plans to promote the construction of smart cities and the development of information industry.Secondly,clarify government functions,introduce preferential policies for micro,small and medium-sized enterprises to optimize the business environment.Thirdly,promote the evaluation of China’s urban business environment and establish the authoritative one,to promote business environment through evaluation.