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The Logic and Effect of Digital Economy to Narrow the Income Gap between Urban and Rural Residents |
SI Zeng-chuo, LI Yan |
School of Commerce, Jiangsu Normal University, Xuzhou, Jiangsu, 221116 |
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Abstract Promoting the integrated development of urban and rural areas and continuously narrowing the income gap between urban and rural residents are effective ways to promote common prosperity. As a new engine for high-quality development, the digital economy will have a profound impact on the income distribution pattern of urban and rural residents based on the principle of inclusiveness. Theoretical analysis shows that digital economy improves the income level of rural residents and narrow the income gap between urban and rural residents mainly by promoting agriculture upgrading, increasing non-agricultural employment, and enhancing the entrepreneurial level of rural residents. In order to empirically test the reducing effect on the income gap between urban and rural residents with the digital economy, based on the data of 272 prefecture-level cities in China from 2011 to 2019, a double fixed effect test model, threshold effect model, and spatial spillover effect model were constructed to examine the effectiveness of the digital economy reducing the income gap between urban and rural residents. The results show that the digital economy is conducive to reduce urban-rural residents income gap. the digital economy in Eastern China, Central China and Western China has a reduction effect on urban and rural residents' income gap, and the reduction effect in the eastern region is the largest. The restraining effect of digital economy on the income gap between urban and rural residents is characterized by a nonlinear increase in marginal effect, the higher the development level of digital economy, the stronger its reducing effect on the income gap between urban and rural residents, and the level of urbanization strengthens the effect, and the digital economy and urbanization have formed a good interaction. The development of digital economy can not only narrow the income gap between urban and rural residents in the region, but also narrow the income gap between urban and rural residents in adjacent areas through the spatial spillover effect, and the spatial spillover effect is larger than the spatial local effect.
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Received: 05 May 2023
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