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Digital dividend or digital divide? Digital economy and urban-rural income inequality in China

Published: 01 October 2023 Publication History

Abstract

This study investigates the impact of the digital economy on income inequality between urban and rural areas. Panel data covering 194 cities in China from 2011 to 2018 are employed to construct a digital economy development index using the entropy value method. Nonlinear and threshold models are executed to ascertain how digital economy development influences the urban-rural income gap in China. The results reveal a U-shaped relationship between the digital economy and the urban-rural income gap. Furthermore, the threshold effect analysis demonstrates a digital divide in diverse regions due to different urbanization stages. This study furnishes empirical evidence for attaining balanced urban-rural development in the digital economy in developing countries.

Highlights

This paper reveals the nexus of digital economy and the urban-rural income inequality in China.
There is a U-shaped relationship between the digital economy development and the urban-rural income gap.
There is a threshold effect of urbanization in the impact of digital economy on the urban-rural income gap.
It offers empirical evidence for attaining balanced urban-rural development in the digital economy in developing countries.

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    cover image Telecommunications Policy
    Telecommunications Policy  Volume 47, Issue 9
    Oct 2023
    164 pages

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    Pergamon Press, Inc.

    United States

    Publication History

    Published: 01 October 2023

    Author Tags

    1. Digital economy
    2. Urban-rural income gap
    3. Urbanization
    4. Threshold model

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