How Does Digital Economy Drive China's Rural Revitalization?

Leihua He, Feng Wang and Changming Wang
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Leihua He: School of Economics & Management, Northwest University, Xi'an 710127, China
Feng Wang: School of Economics & Management, Northwest University, Xi'an 710127, China
Changming Wang: School of Economics & Management, Northwest University, Xi'an 710127, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2023, vol. 18, issue 1, 118-144

Abstract: Digital economy, a new driving force for China's economic development, creates a good opportunity for rural revitalization. This paper begins with a theoretical analysis of the impact of the digital economy on rural revitalization. Based on panel data from 30 provinces and cities in China from 2011 to 2018, as well as measurement-based digital economy development Index and rural revitalization index, the empirical test is conducted of the driving effect, mechanism and heterogeneity of digital economy on rural revitalization. Results show that the digital economy has a significant driving effect on rural revitalization, a conclusion that still holds even after taking into account endogenous problems and conducting a series of robustness tests. Technological innovation and human capital constitute the important mechanism for the digital economy to drive rural revitalization. Furthermore, the digital economy has a spatial spillover effect on rural revitalization, that is, it can promote rural development in neighboring areas. As regards various dimensions of rural revitalization, the digital economy can significantly promote ecological livability, civilized rural style, effective governance and prosperity. But its impact on the industrial boom is yet to appear. The western region enjoys more digital economy dividends in rural revitalization are more significant than central and eastern regions. Rural revitalization requires the government to deepen the integration of the digital economy and agriculture and implement a differentiated digital economy development strategy.

Keywords: digital economy; rural revitalization; technological innovation; human capital (search for similar items in EconPapers)
Date: 2023
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