A Study on the Spatial Correlation Effects of Digital Economy Development in China from a Non-Linear Perspective

Abstract

Accurate analysis of the spatial correlation effects, spatial aggregation patterns, and critical factors in the development of China’s digital economy is of great significance to the high-quality development of China’s economy. Based on the monthly data of “The Tencent Internet Plus” digital economy index for 31 provinces in China from 2018 to 2020, the non-linear Granger causality test and social network analysis were applied to reveal the spatial correlation effects of China’s digital economy. The quadratic assignment procedure (QAP) was used to empirically examine the factors influencing the formation of non-linear spatial association networks. The results show that the spatially linked relationships of the digital economy in 31 Chinese provinces exhibit a significant non-linear spatially correlated network structure. Block model analysis reveals that the development of the digital economy between the four major sectors is closely linked, and the national linkage effect is significant. The results of the secondary assignment procedure indicate that capital stock, information infrastructure, and geographical proximity have a significant positive impact on the formation of spatial linkages in the digital economy. In contrast, technological innovation has a significant negative impact.

Keywords

• digital economy
• nonlinear spatial correlations
• non-linear Granger causality test
• social network analysis