Impact of Digital Economy on Dual Circulation: An Empirical Analysis in China

Jun Wu () and Tianyi Chen
Additional contact information
Jun Wu: SILC Business School, Shanghai University, Shanghai 201899, China
Tianyi Chen: SILC Business School, Shanghai University, Shanghai 201899, China

Sustainability, 2022, vol. 14, issue 21, 1-15

Abstract: With the growth of Internet technologies, including 5G, blockchain, and big data, the digital economy has emerged as an important driving force of economic growth, offering a fresh viewpoint on the sustainability of dual circulation. Thus, this study analyzes the impact of the digital economy on dual circulation and the underlying influencing mechanism. The influence of the digital economy on the degree of dual circulation sustainability was measured using panel data of 30 provinces in China from 2011 to 2020, and the influence was found to be significant and statistically positive. The analysis of the mechanism indicates that the increasing technological innovation capacity can amplify the digital economy’s effect on dual circulation. The promotion effect of the digital economy has a spatial spillover effect. The function of the digital economy in fostering dual circulation is heterogenous, with a greater impact on central and eastern China. Therefore, this study proposes that increasing communication infrastructure investment and implementing differentiated policies supporting the digital economy should be considered by policymakers to boost dual circulation.

Keywords: dual circulation; digital economy; sustainable growth; technology innovation; spatial effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/21/14466/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/21/14466/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:21:p:14466-:d:962817

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().