The taoist culture and the digital economy: Evidence from Chinese cities

A key component of China's national plan is now the growth of the digital economy. This development relies on the continuous and in-depth practice of the vast majority of Chinese people who are deeply influenced by Chinese culture, of which Taoist culture is an important component that is closely related to the Chinese people and deeply influences overall worldviews. How does Taoist culture affect digital economy growth? Applying a theoretical analysis, in order to investigate this subject, this study used a two-way city-year fixed effects model with Chinese city data. The results demonstrate that Taoist culture can promote digital economy growth. The reason for this is that the "action" of Taoist culture refers to doing what should be done rather than inactivity. Additionally, the "quietness" of Taoist culture facilitates public individuals' single mindedness. The findings imply that Taoist culture has financial decentralization and financial technology effects. Theoretically, improvement in the degree of financial decentralization and technology can promote cities' digital economy development.