Digitalization and urban economic sustainability: The role of the government and foreign direct investments

•The level of digitalization is positively related to a city's sustainable development.•Local government can amplify the positive relationship between digitalization and a city's sustainable development.•FDI can amplify the positive relationship between digitalization and a city's sustainable development. Sustainable development of emerging countries has received significant attention in recent years. This study examines how digitalization affects economic sustainability. Based on city-level empirical evidence, this study finds a significant positive association between the usage of digital technology and economic sustainability. Furthermore, we identify that local government and foreign direct investment can amplify the positive relationship between digitalization and economic sustainability. Overall, this study complements the extensive research on digital economy and economic sustainability.