Economic Analysis of Smart Cities: How does Technological Progress Drive Urban Productivity and Economic Growth

DOI

10.2991/978-2-38476-475-4_130How to use a DOI?

Keywords

Smart cities; Firm productivity; Consumer behavior; Digital infrastructure; Urban economics

Abstract

This paper provides a systematic literature review of 14 core papers published from 2020-2025, using production cost theory, consumer behavior theory and market structure theory as a framework. The analysis is organized around three key research questions:(1) How do smart city technologies increase firm productivity (2) How do they change consumer behavior? (3) What role do government policies play in these processes? The study finds that smart city technologies increase business productivity by enhancing digital infrastructure, reducing coordination costs, and facilitating more efficient resource allocation. On the consumer side, real-time platforms and personalized services significantly improve demand elasticity and behavioral responsiveness. Government policies (e.g., open data, digital governance, and regulatory upgrades) amplify these impacts by reducing market friction and supporting inclusive digital transformation. The study concludes that smart city technologies fundamentally reshape micro-economic behavior and recommends dynamic regulation, data sharing platforms, and cross-sectoral collaboration to fully realize inclusive economic growth. Limitations of the study include the need for more causal micro-level research and the lack of in-depth discussion of cross-cutting issues such as data governance and privacy trade-offs.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yixin Tang
PY  - 2025
DA  - 2025/11/11
TI  - Economic Analysis of Smart Cities: How does Technological Progress Drive Urban Productivity and Economic Growth
BT  - Proceedings of the 2025 10th International Conference on Modern Management, Education and Social Sciences (MMET 2025)
PB  - Atlantis Press
SP  - 1183
EP  - 1192
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-475-4_130
DO  - 10.2991/978-2-38476-475-4_130
ID  - Tang2025
ER  -