Research on the Index System of Cities’ Digital Economy

Development Level in the Yellow River Basin

Jie Ren and Yifan Lv

Inner Mongolia University of Science & Technology, Baotou, Inner Mongolia Autonomous Region, China

Keywords: The Yellow River Basin, Digital Economy, Index Measurement, Entropy-TOPSIS Method.

Abstract: By constructing the index system of urban digital economy development, using entropy-TOPSIS method, and

combining China Urban Digital Economy Index and China City Statistical Yearbook from 2020 to 2021, this

paper makes index construction and empirical analysis of 22 key cities in the Yellow River Basin, and

compares and analyzes with the national development from data information infrastructure, digital

government and digital society, digital economy and digital industry. The results of the study show that the

overall scores of cities in the Yellow River Basin are higher than the national average in digital information

base, digital policy planning, government service digitalization and industrial digitalization. However, in

terms of data foundation, government governance digitalization and digital industrialization, it is lower than

the national average, indicating that the growth rate of digital economy in the Yellow River Basin is good,

but the development is uneven. The overall level of digital economy development is evaluated by entropy-

TOPSIS method and the results show that ten cities are star-level, five mediocre-level and seven backward-

level. Thus, it is necessary to promote the balanced and high-quality development of the region through

adjustment of economic policies in the Yellow River Basin.

1 INTRODUCTION

General Secretary Xi Jinping pointed out that “digital

economy is the future direction of global

development, and innovation is the wing of the Asia-

Pacific economy”. The world is entering a period of

rapid development in digital economy. New

technologies, new business models and new

platforms such as 5G, artificial intelligence and smart

cities are flourishing, profoundly affecting global

scientific and technological innovation, industrial

restructuring as well as economic and social

development. During the period of the 14

Five-Year

Plan, China is actively promoting digital

industrialization and industrial digitalization, and

promoting the deep integration of digital technology

with economic and social development. As a result,

the new generation of communication technologies

represented by informatization, digitization and

intelligence have driven the digital transformation of

cities into an accelerated exploration period. Specific

governance practices continue to explore and update

the path and methods of digital technology

applications to integrate resources to promote the

modernization of governance system and capacity,

forming a good situation in which digital technology

drives all-round digital transformation of cities.

However, the gap between the North and the

South is widening in that situation, and with the high-

quality development of the Yellow River Basin

during the 14

Five-Year Plan period, it has become

a major agenda for regional coordinated

development. The development level of urban digital

economy in the Yellow River Basin and whether it

can drive regional high-quality development with

digital economy have become important issues that

need to be resolved urgently in the new period.

According to domestic research, scholars focused on

the Yellow River Basin from ecological governance

(Wang, 2020, Shen, 2020), industrial development

(Chen, 2021, Tian, 2021), watershed governance

(Liao, 2021, Du, 2021)

and other issues. Although

(Zhou, et al., 2020) had carried out a logical

construction of digital economy development in the

Yellow River Basin through macro, meso and micro

levels, (Wang, 2021) had explored the ecological

protection and high-quality development of the

Yellow River Basin through digital technology

applications. On the whole, the measurement

research on urban digital economy development of

432

Ren, J. and Lv, Y.

Research on the Index System of Cities’ Digital Economy Development Level in the Yellow River Basin.

DOI: 10.5220/0011183400003440

In Proceedings of the International Conference on Big Data Economy and Digital Management (BDEDM 2022), pages 432-440

ISBN: 978-989-758-593-7

cities in the Yellow River Basin still needs further

attention.

This paper analyzes the comprehensive level of

digital economic development in 22 key cities in the

Yellow River Basin by combining the indicator

construction and empirical analysis of China Urban

Digital Economy Index from 2020 to 2021 (the actual

statistical data is 2019 to 2020) and China City

Statistical Yearbook, and comparing and analyzing

the data information infrastructure, digital

government and digital social governance, digital

economy and digital industry with the national

average level of development respectively. The index

is designed to provide policy suggestions for

accelerating the growth of digital economy and

promoting high-quality development of the Yellow

River Basin.

2 MODELING METHOD AND

INDEX CONSTRUCTION

2.1 Measurement Methods

In this paper, the entropy-TOPSIS method is used to

measure the development level of urban digital

economy in the Yellow River basin. The core idea is

to use the entropy method to assign weight to each

indicator on the basis of standardization, and then

quantify and sort the relative distance between the

evaluation object and the optimal and worst scheme

by TOPSIS. This method combines the objective

advantages of the entropy method with the advantages

of easy calculation and reasonable results of TOPSIS

method. Its specific calculation steps are as follows:

First, in order to avoid the influence of

dimensional differences such as unit and quantity

among the original data on the data results, all the

original data are standardized and converted into

relative values to make the data comparable. Since

there is no negative indicator in this index system,

only positive indicator standardization can be carried

out. To avoid the influence of extreme data on the

results of entropy method, we refer to the

standardized formula of (Yin, et al. 2017):



















∗ 0.9 + 0.1 (1)

Where

is the value

()

mjni ，，，，  21;21 ==

of the j-th indicator j for the i-th unit and

xmax

is the

maximum value of j, and

xmin

is the minimum value

of the j-th indicator.

The second step is to calculate the proportion of

the i-th data under the j-th indicator to the indicator:



ijijij

yyp

(2)

The third step is to calculate the entropy value of

the j-th indicator:

ijj

lnppke



−=

(3)

Where

)ln(/1 rnk =

is the year and

the number of cities.

The fourth step is to calculate the information

entropy redundancy:

ed −= 1

(4)

The fifth step is to calculate the weight of the j-th

indicator:



jjj

ddw

(5)

The sixth step is to calculate the weighting matrix

of the indicators measuring the development level of

the digital economy:

mnij

= )(

(6)

The seventh step is to determine the optimal

solution Q





and the worst solution Q





based on the

weighting matrix:



−−

−=

ijji

rQd

)(

(7)

The eighth step is to calculate the relative

proximity Ci between each measure scheme and the

ideal scheme:

−+

−

(8)

Where the relative proximity Ci lies between 0

and 1. The larger the value of Ci, the better the

development level of digital economy in the city i. On

the contrary, the development level of digital

economy in city i is poor.

Research on the Index System of Cities’ Digital Economy Development Level in the Yellow River Basin

433

2.2 Establishing Index System

Creating a regional economic center city and building

a regional digital highland are the strategic priorities

of Baotou’s economic and social development during

the 14th Five-Year Plan period. Digital economy,

digital government and digital society led by digital

technology have become the main direction of

accelerated urban development. In terms of the

development trend of digital transformation,

indicators based on digital information infrastructure,

digital government, digital society and digital

industry can effectively measure the basic situation

and development direction of urban digital

transformation. This paper investigates 8 provinces in

the Yellow River Basin. Because of the severe lack

of urban measurement indicator data in some

provinces, this paper finally selects 22 key cities in

the Yellow River Basin for measurement.

Considering the data availability and reliability, the

research is based on the relevant data of China Urban

Digital Economy Index (the actual statistical data is

2019 to 2020) and China City Statistical Yearbook

from 2020 to 2021. The index system of digital

transformation of 22 key cities in the Yellow River

Basin is constructed through the three dimensions of

digital infrastructure, digital government, digital

society and digital industry. Tertiary indicators are

constructed around digital information base, data

foundation, digital policy planning, government

service digitalization, government governance

digitalization, digital industrialization and industrial

digitalization. The entropy method is used to measure

the weight and evaluate the overall situation of digital

transformation and development of 22 key cities in

the Yellow River Basin, and compare it with the

national average level of digital development, as

shown in Table 1.

Table 1: Digital economy development level index system and weight.

Guideline Secondary index Tertiary index Weight

Digital Infrastructure

(0.2012)

Digital Information Base

(0.1064)

F11 Fixed-line broadband application permeability

0.0208

F12 mobile network application permeability

0.0228

F13 Urban Cloud Platform

0.0283

F14 Information Security

0.0345

Data Foundation

(0.0948)

F21 Urban Big Data Platform

0.0342

F22 Government Data Sharing Platform

0.0276

F23 Open Data Platform

0.0329

Digital

Government

with

Digital

Social

(0.4883)

Digital Policy Planning

(0.1259)

S11 Number of policies covering livelihood areas

0.0284

S12 Digital policy projects in the field of livelihood

0.0338

S13 Number of governance areas covered

0.0321

S14 Number of digitization projects in the

governance area

0.0316

Digitization of Government

Services

(0.2001)

S21 Education Digitalization

0.0206

S22 Healthcare Digitalization

0.0275

S23 Civil Service Digitalization

0.0370

S24 Human Services Digitalization

0.0300

S25 Poverty Alleviation Digitalization

0.0365

S26 Doing Business Digitalization

0.0206

S27 Living Environment Digitization

0.0279

Digitalization of Government

Governance

(0.1623)

S31 Public Security Governance Digitalization

0.0228

S32 Information Governance Digitalization

0.0245

S33 Eco-friendly Digitalization

0.0384

S34 Municipal Management Digitalization

0.0217

S35 Emergency Management Digitalization

0.0216

S36 Digitization of natural resource management

0.0335

Digital

Industry

(0.3105)

Digital Industrialization

(0.0647)

I11 digital industrialization drives industry

0.0301

I12 digital industrialization main industry

0.0346

Industry Digitization

(0.2457)

I21 Agriculture Digitization

0.0343

I22 Financial Digitization

0.0311

I23 Manufacturing Digitization

0.0343

I24 Energy Digitization

0.0324

I25 Life Service Digitalization

0.0305

I26 Transportation and Logistics Digitalization

0.0355

I27 Science, education, culture and sports digital

0.0240

I28 Healthcare Digitization

0.0237

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434

3 EMPIRICAL MEASUREMENT

3.1 A Digital Economy Development

Level of Each Subsystem

According to the comprehensive evaluation model,

the weights of each index can be obtained after

standardizing the original data, calculating the

entropy value and the entropy redundancy. Then, the

weight of urban digital economy development index

in the Yellow River Basin from 2020 to 2021 and the

comprehensive average level of national digital

economy development are obtained, as shown in

Figure 1.

Figure 1a: Overall Scores of Digital Economy

Development.

Figure 1b: Digital infrastructure.

Figure 1c: Digital government and digital society.

Figure 1d: Digital plus industry.

3.1.1 Overall Development of Digital

Economy in the Yellow River Basin

First, from Figure 1a, it can be seen that the overall

digital economy development index of cities in the

Yellow River Basin as a whole has increased from

0.462 in 2020 to 0.617 in 2021, with a development

rate of 33.51%, which is faster than the national

average digital economy development growth rate of

29.96% (Figure .1a).

Second, from the dimensions of "digital

infrastructure" and "digital government and digital

society" (Figure .1b and Figure .1c), cities in the

Yellow River Basin as a whole are higher than the

national average, with growth rates of 31.29% and

47.14% respectively, among which the development

growth rate of digital infrastructure in the Yellow

River Basin is lower than the national average of

31.73%, while the development growth rate of digital

government and digital society is higher than the

national average of 45.96%.

Third, in the dimension of "digital plus industry"

(Figure .1d), although the cities in the Yellow River

Basin as a whole lag behind the national average of

0.159 from 2020, they exceed the national average of

0.178 in 2021 with a growth rate of 15.49%.

3.1.2 Development Status of Urban Digital

Economy in Yellow River Basin

Figure 2 shows the overall scores of 22 cities in the

Yellow River Basin on the secondary indicators of

digital economy development. From a holistic

perspective, the overall scores of cities in the Yellow

River Basin are higher than the national average in

the dimensions of digital information base (0.066),

digital policy planning (0.078), digital government

services (0.110), and digital industry (0.135). Among

them, cities higher than the national average account

for 68.18%, 68.18%, 63.64% and 50% of the total

number of cities investigated respectively, while they

are lower than the national average in the dimensions

of data foundation (0.037), digital government

Research on the Index System of Cities’ Digital Economy Development Level in the Yellow River Basin

435

governance (0.082), and digital industrialization

(0.031). Among which cities with lower ratio than the

national average accounts for 68.18%, 45.45%, and

50% of cities investigated respectively.

In terms of cities, in the dimension of "digital

information base", the top three are Jinan, Taiyuan

and Kaifeng, whose digital information base levels

are high, with scores of 0.098, 0.096 and 0.095

respectively. While the last three are Linfen, Haidong

and Lyu liang, whose digital information base levels

are low, with scores of 0.020, 0.018 and 0.014

respectively. In the dimension of "data foundation",

Taiyuan, Zhengzhou and Jinan are ranked in the top

three, with high data foundation levels and scores of

0.084, 0.081 and 0.072 respectively. While Lüliang,

Shizuishan and Erdos are ranked in the bottom three,

with low data foundation level and scores of 0.012. In

the dimension of "digital policy planning", the top

three are Jinan, Yantai and Dongying, which show

that their digital policy planning levels are high, with

scores of 0.132, 0.131 and 0.128 respectively. While

the last three are Lüliang, Linfen and Shizuishan,

whose digital policy planning levels are low, with

scores of 0.015, 0.014 and 0.012 respectively. In the

dimension of "digitalization of government services",

the top three are Yantai, Baotou and Kaifeng, whose

digitalization levels of government services are high,

with scores of 0.172, 0.169 and 0.167 respectively.

While the last three are Haidong, Jinchang and

Tianshui, whose digitalization levels of government

services are low, with scores of 0.037, 0.036 and

0.033 respectively. In the dimension of "government

governance digitalization", the top three are Yantai,

Yulin and Hohhot, whose digitalization levels of

government governance are high, with scores of

0.147, 0.132 and 0.130 respectively. While the last

three are Lüliang, Haidong and Shizuishan, whose

digitalization levels of government governance are

low, with scores of 0.034, 0.031 and 0.027

respectively. In the dimension of "digital

industrialization", the top three cities are Zhengzhou,

Yinchuan and Yantai, whose digital industrialization

development levels are high, with scores of 0.063,

0.058 and 0.057 respectively. While the last three

cities are Yan’an, Erdos and Lyu liang, whose digital

industrialization levels are low, with scores of 0.007.

In the dimension of "industrial digitalization", the top

three cities are Taiyuan and Hohhot Zhengzhou,

which have high industrial digitalization levels with

scores of 0.258, 0.240 and 0.234 respectively. While

the last three cities are Tianshui, Haidong and

Lüliang, which have low industrial digitalization

levels with scores of 0.034, 0.032 and 0.030

respectively.

Figure 2: Measurement of the Development Level of Urban Secondary Indexes in the Yellow River Basin from 2020 to 2021.

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436

3.1.3 Measurement of Urban Development

Indicator in Yellow River Basin

From Figure 3, we can intuitively understand the

overall scores of cities in the Yellow River Basin on

the development level of the tertiary indicators of

digital economy. First of all, in the dimension of

"digital infrastructure", the development level of

digital information base of cities in the Yellow River

Basin is higher than the national average. However,

the data infrastructure lags behind the national

average, especially in the construction of urban big

data platform and open data platform, which is

obviously different from the national average,

seriously restricting the overall digital transformation

and upgrading of cities in the Yellow River Basin.

Second, in the dimension of "digital government and

digital society", cities in the Yellow River Basin as a

whole are higher than the national average in digital

policy planning, digital construction of government

services and digital construction of government

governance. However, the digitalization of poverty

alleviation, business environment and ecological

environmental protection lags behind the national

average development level, especially the

digitalization of ecological environmental protection

is far from the national average level, which restricts

the "green benefits" of digital economy development

in the Yellow River Basin. At the same time, it is

difficult to form a new pattern of overall digital urban

development in the Yellow River Basin. Finally, in

the dimension of "digital plus industry", cities in the

Yellow River Basin lag behind the national average

in financial digitalization, manufacturing

digitalization, transportation and logistics

digitalization, as well as medical and health

digitalization, which is not only detrimental to the

industrial integration of cities in the Yellow River

Basin, but also restricts the transformation and

upgrading of industrial digitalization of cities in the

Yellow River Basin.

Figure 3: Score of tertiary indexes of data infrastructure.

0 0,005 0,01 0,015 0,02 0,025 0,03

F11 Fixed-line broadband application permeability

F13 Urban Cloud Platform

F21 Urban Big Data Platform

F23 Open Data Platform

S12 Digital policy projects in the field of livelihood

S14 Number of digitization projects in the…

S22 Healthcare Digitalization

S24 Human Services Digitalization

S26 Doing Business Digitalization

S31 Public Security Governance Digitalization

S33 Eco-friendly Digitalization

S35 Emergency Management Digitalization

I11 digital industrialization drives industry

I21 Agriculture Digitization

I23 Manufacturing Digitization

I25 Life Service Digitalization

I27 Science, education, culture and sports digital

National average the Yellow River Basin

Research on the Index System of Cities’ Digital Economy Development Level in the Yellow River Basin

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3.2 Comprehensive Level of Digital

Economy Development

The TOPSIS empirical measurement results of digital

economy development level of 22 cities in the Yellow

River Basin from 2020 to 2021 are shown in Table 2

and Fig.4. It can be found that the comprehensive

scores of digital economy development of cities in the

Yellow River Basin during the investigation period

are distributed between 0.0535 and 0.7531. The city

with the lowest score is Haidong (0.0535), and the

city with the highest score is Yantai (0.7531). The

mean score (M) of the comprehensive level of digital

economy development in 22 cities in the Yellow

River Basin is 0.4547, and the standard deviation

(SD) is 0.2275, indicating that the comprehensive

level of digital economy development in cities in the

Yellow River Basin is generally good from 2020 to

2021. According to the relationship between mean

score (M) and standard deviation (SD), 22 cities can

be divided into three types: star level (score >

M+0.5SD), mediocre level (M-0.5SD < score <

M+0.5SD) and backward level (score < M-0.5SD).

Table 2: evaluation calculation results based on TOPSIS.

City

Optimal

solution

𝑑





Worst

solution

𝑑





Relative

Proximity

𝐶



Yantai 0.0441 0.1346 0.7531

Jinan 0.0516 0.1342 0.7222

Zhengzhou 0.0618 0.1349 0.6859

Hohhot 0.0573 0.1245 0.6849

Xi'an 0.0599 0.1099 0.6472

Lanzhou 0.0740 0.1234 0.6250

Taiyuan 0.0776 0.1248 0.6165

Kaifeng 0.0763 0.1223 0.6159

Luoyang 0.0748 0.1194 0.6149

Yinchuan 0.0842 0.1184 0.5845

Dongying 0.0977 0.1056 0.5195

Yulin 0.1004 0.1078 0.5177

Xining 0.1007 0.1012 0.5014

Baotou 0.1039 0.1044 0.5012

Ordos 0.1291 0.0771 0.3737

Linfen 0.1423 0.0494 0.2576

Yan'an 0.1457 0.0441 0.2323

Shizuishan 0.1515 0.0332 0.1799

Tianshui 0.1490 0.0230 0.1338

Jinchang 0.1524 0.0164 0.0970

Lüliang 0.1558 0.0147 0.0862

Haidong 0.1546 0.0087 0.0535

Yantai 0.0441 0.1346 0.7531

Jinan 0.0516 0.1342 0.7222

Zhengzhou 0.0618 0.1349 0.6859

Hohhot 0.0573 0.1245 0.6849

Xi'an 0.0599 0.1099 0.6472

Lanzhou 0.0740 0.1234 0.6250

Taiyuan 0.0776 0.1248 0.6165

Kaifeng 0.0763 0.1223 0.6159

The overall scores of digital economy

development in star-level cities are higher than

0.5684, including 10 cities, Yantai, Jinan,

Zhengzhou, Hohhot, Xi’an, Lanzhou, Taiyuan,

Kaifeng, Luoyang and Yinchuan. The overall scores

of digital economy development are 0.7531, 0.7222,

0.6859, 0.6849, 0.6472 and 0.6250 respectively.

The overall scores of digital economy development in

Figure 4: Overall scores of urban digital economy development of the Yellow River Basin from 2020 to 2021.

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

Yantai

Jinan

Zhengzhou

Hohhot

Xi'an

Lanzhou

Taiyuan

Kaifeng

Luoyang

Yinchuan

Dongying

Yulin

Xining

Baotou

Erdos

Linfen

Yan'an

Shizuishan

Tianshui

Jinchang

Lüliang

Haidong

BDEDM 2022 - The International Conference on Big Data Economy and Digital Management

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mediocre-level cities range from 0.3410 to 0.5684,

including Dongying, Yulin, Xining, Baotou and

Erdos, and their overall scores of digital economy

development are 0.5195, 0.5177, 0.5014, 0.5012 and

0.3737 respectively, accounting for 23% of the total

number of cities investigated. The overall scores of

digital economy development in backward-level cities

are lower than 0.3410, including Linfen, Yan’an,

Shizuishan, Tianshui, Jinchang, Lüliang and Haidong.

The overall scores of digital economy development

are 0.2576, 0.2323, 0.1799, 0.1338, 0.0970, 0.0862

and 0.0535 in respectively, accounting for 32% of the

total number of cities investigated.

4 CONCLUSIONS AND

SUGGESTIONS

By constructing the indicator measurement system of

digital economy development, the entropy-TOPSIS

method is used to measure the overall development

of digital economy and the level of each subsystem in

22 cities in the Yellow River Basin from 2020 to

2021. Through data analysis, this paper mainly draws

the following conclusions:

In terms of secondary indicators, Jinan, Taiyuan

and Kaifeng are the cities with better development in

digital information infrastructure, while Linfen,

Haidong and Lyu liang are the cities with poorer

development. The cities with better development in

data infrastructure are Taiyuan, Zhengzhou and

Jinan, while the cities with poorer development are

Lüliang, Shizuishan and Erdos. The cities with better

development in digital policy planning are Jinan,

Yantai and Dongying, while the cities with poorer

development are Lyu liang, Linyi and Shizuishan.

The cities with better digital construction of

government services are Yantai, Baotou and Kaifeng,

while the cities with poorer development are

Haidong, Jinchang and Tianshui. The cities with

better development in the digital construction of

government governance are Yantai, Yulin and

Hohhot, while the cities with poorer development are

Lyu liang, Haidong and Shizuishan. The cities with

better development in digital industrialization

construction are Zhengzhou, Yinchuan and Yantai,

while the cities with poorer development are Yan’an,

Erdos and Luliang. Taiyuan, Hohhot and Zhengzhou

are the cities with better development in industrial

digitalization construction, while Tianshui, Haidong

and Lyu liang are the cities with poorer development.

The overall scores of cities in the Yellow River

Basin are higher than the national average in digital

information base (0.066), digital policy planning

(0.078), digital government services (0.110), and

digital industry (0.135), with cities above the national

average accounting for 68.18%, 68.18%, 63.64% and

50% of the total number of cities investigated

respectively, while they are lower than the national

average in data foundation (0.037), digital

government governance (0.082) and digital

industrialization (0.031), with 68.18%, 45.45%, and

50% of the total number of cities investigated being

below the national average respectively. It shows that

the growth rate of urban digital economy

development of Yellow River Basin is generally

good, but the development is uneven. By evaluating

the overall level of digital economy development by

entropy-TOPSIS method, 22 cities are classified into

10 star-level cities, 5 mediocre-level cities and 7

backward-level cities, accounting for 45%, 23% and

32% of the total number of cities investigated

respectively.

In conclusion, to achieve the goal of realizing the

overall digital transformation of cities in the Yellow

River Basin and improving the overall level of digital

economy development through technology

empowerment, it is necessary to clarify the top-level

design and transformation stage planning around the

development law of digital transformation.

Specifically, it is essential to build a digital industrial

system and a digital economic development pattern,

effectively improve the security level of digital social

governance, promote the integrated development of

urban digital government services with multiple

parties, and vigorously draw on the experience of

advanced cities in promoting digital construction, so

as to comprehensively promote the high-quality

development of cities in the Yellow River Basin.

FUND PROJECTS

① Project supported by Inner Mongolia Natural

Science Foundation: Digital Social Governance

Index System Measurement and Path Improvement

of Hohhot, Baotou, Erdos and Wulanchabu Based on

Innovation Environment Optimization (Grant No.:

2021BS0700); ② Key Project supported by Inner

Mongolia Philosophy and Social Science Planning

Project Base: Innovation Environment Optimization,

Technology Empowerment and the Path of Digital

Transformation of Social Governance of Hohhot,

Baotou, Ordos and Wulanchabu (Grant No.:

2020ZJD016).

Research on the Index System of Cities’ Digital Economy Development Level in the Yellow River Basin

439

ABOUT THE AUTHOR

Jie Ren, Inner Mongolia University of Science &

Technology, Lecturer, Ph.D. in Public Security. Her

research interest is science and technology innovation

and digital governance; Yifan Lv, Research Assistant

of Inner Mongolia University of Science &

Technology. His research interest is digital

governance.

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