Whether the digital economy will successfully encourage the integration of urban and rural development: A case study in China

Abstract

The digital economy has become an important driver for stimulating economic growth. The digital economy has now widely penetrated the fields of economy and society, providing new opportunities for the development of urban-rural integration. Based on panel data for 30 provinces in China from 2011 to 2020, this study constructed an index system for the integration of the digital economy and the development of urban–rural areas and conducted a systematic measurement analysis. Additionally, we used a two-step system of GMM estimation to analyze the impact of the digital economy on the development of urban-rural integration. The findings demonstrate the significant imbalance paradox of China’s digital economy development, which is shown in a gradient where the eastern region is higher than the center and the central region is higher than the west. Urban-rural integration levels in China fluctuate and display geographical variance, typically displaying high levels in the east and low levels in the west. Urban-rural integration is significantly encouraged by the digital economy, yet it varies in variability between different areas and dimensions. Additionally, rural human capital moderates the favorable effects of the digital economy on urban-rural integration. As a result, in order to achieve the integrated development of urban and rural areas, it is imperative to fully exploit the active role of the digital economy, better support the development of rural revitalization, bridge the “digital divide” between urban and rural development, and build a strong foundation for the formation of a digital urban-rural integrated development pattern with urban and rural areas and common construction and sharing.

Keywords

• Digital economy Urban-rural integration Kernel density estimation Two-step dynamic system GMM