The impact of digital government construction on common prosperity ——using data collected from 293 prefecture-level cities in China over the 2016–2022 period

Weikang Jiao, Chuan Zhang and Yueyun Wang

International Review of Economics & Finance, 2025, vol. 102, issue C

Abstract: Common prosperity is a fundamental objective of social development, and digital government has recently emerged as pivotal in modernizing national governance. Despite increasing policy attention, systematic academic analysis of digital government's impact on common prosperity remains limited. This study uses panel data from 293 Chinese cities (2016–2022) and applies a two-way fixed effects model to examine the relationship, including heterogeneity, underlying mechanisms, and moderating effects. Results show digital government significantly promotes common prosperity, especially in non-eastern, lower-tier cities, cities with former national poverty counties, and non-low-carbon pilot cities. Mechanistically, digital government enhances common prosperity by increasing macro-level tax burdens. Additionally, economic agglomeration and technological innovation weaken this promoting effect, whereas the digital economy lacks a significant moderating role. The findings deepen understanding of digital government's potential contributions toward achieving common prosperity.

Keywords: Digital government; Common prosperity; Heterogeneity; Mechanism of action; Moderating effect (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:102:y:2025:i:c:s1059056025005167

DOI: 10.1016/j.iref.2025.104353

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