An Investigation of the Impact of Cultural Distance on the Digital Economy in China

Jiafeng Gu ()
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Jiafeng Gu: Peking University

Journal of the Knowledge Economy, 2025, vol. 16, issue 5, No 26, 16312-16337

Abstract: Abstract The digital economy has become a driving force for global economic development, resulting in high demand for balanced regional development. Using surname distance as a proxy variable for cultural distance, this study examined the impact of cultural differences on the development of a regional digital economy. The results of the analysis of panel data from 31 Chinese provinces from 2011 to 2019 indicated that the development of a region's digital economy positively contributes to the development of the digital economy in areas of cultural proximity. Further analysis of the mechanisms of cultural differences in the digital economy showed that cultural distance affects the development of the digital economy in a province through three mechanisms: birth rate, divorce rate, and the share of small families. Moreover, the findings suggest regional, divorce, and demographic heterogeneity in the impact of cultural distance on the digital economy.

Keywords: Digital economy; Culture; Surname distance; Divorce rate; Spatial econometrics (search for similar items in EconPapers)
JEL-codes: C23 D91 J11 Z10 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-025-02591-2

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