Standardization and Urban Entrepreneurial Vitality

Abstract

Standardization, as an important means of promoting economic growth and enhancing competitiveness, plays a significant role in stimulating urban entrepreneurial vitality. Using panel data for 277 Chinese cities from 2009 to 2022, this study examined the effects and underlying mechanisms of standardization on entrepreneurial vitality using a multiperiod difference‐in‐differences model. The results show that standardization significantly increased entrepreneurial vitality by approximately 11.8 percent, as measured by new firm registrations. Mechanism analysis indicates that standardization enhanced urban entrepreneurial vitality through three main channels: improvements in the business environment, promotion of digital transformation, and reductions in transaction costs. Heterogeneity analysis further shows that this effect was more pronounced in the service sector. These findings enrich the literature on the economic effects of standardization and provide new evidence on how institutional arrangements shape entrepreneurial activity.