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

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  • Peng, Zhuangzhuang
  • Dan, Ting

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.

Suggested Citation

  • Peng, Zhuangzhuang & Dan, Ting, 2023. "Digital dividend or digital divide? Digital economy and urban-rural income inequality in China," Telecommunications Policy, Elsevier, vol. 47(9).
    • Handle: RePEc:eee:telpol:v:47:y:2023:i:9:s0308596123001271
    DOI: 10.1016/j.telpol.2023.102616
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    1. Ofori, Isaac K. & Osei, Dennis B. & Alagidede, Imhotep P., 2022. "Inclusive growth in Sub-Saharan Africa: Exploring the interaction between ICT diffusion and financial development," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 46(7).
    2. Xiaolan Fu & Shaheen Akter, 2016. "The Impact of Mobile Phone Technology on Agricultural Extension Services Delivery: Evidence from India," Journal of Development Studies, Taylor & Francis Journals, vol. 52(11), pages 1561-1576, November.
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    Cited by:

    1. Mingyi Yan & Xizi Cao, 2024. "Digital Economy Development, Rural Land Certification, and Rural Industrial Integration," Sustainability, MDPI, vol. 16(11), pages 1-27, May.
    2. Wang, Yizi & Li, Lanyi, 2024. "Digital economy, industrial structure upgrading, and residents' consumption: Empirical evidence from prefecture-level cities in China," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1045-1058.
    3. Sensen Jin & Feng Deng, 2024. "Research on Sustainable Economic Dynamics: Digital Technology Development and Relative Poverty of Urban Households," Sustainability, MDPI, vol. 16(8), pages 1-22, April.
    4. Dong Guo & Lin Li & Lu Qiao & Fengyu Qi, 2023. "Digital economy and consumption upgrading: scale effect or structure effect?," Economic Change and Restructuring, Springer, vol. 56(6), pages 4713-4744, December.
    5. Pan Jiang & Yirui Yang & Wei Ye & Liang Liu & Xinchen Gu & Haipeng Chen & Yuhan Zhang, 2024. "Study on the Efficiency, Evolutionary Trend, and Influencing Factors of Rural–Urban Integration Development in Sichuan and Chongqing Regions under the Background of Dual Carbon," Land, MDPI, vol. 13(5), pages 1-26, May.
    6. Lixin Zhou & Caiping Qu & Li Zhi, 2024. "Research on the Impact of Digital Infrastructure on Urban Breakthrough Green Innovation: A Case Study of the Yangtze River Economic Belt in China," Sustainability, MDPI, vol. 16(22), pages 1-22, November.
    7. Muziyun Liu & Hui Liu, 2024. "The Influence and Mechanism of Digital Village Construction on the Urban–Rural Income Gap under the Goal of Common Prosperity," Agriculture, MDPI, vol. 14(5), pages 1-21, May.
    8. Qi, Fengyu & Guo, Dong & Xu, Yaping & Liu, Xiaoxue & Liu, Pengzhen & Xie, Youzhi, 2024. "How does circulation industry agglomeration help close the income gap between urban and rural areas? — Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    9. Jianghong Xu & Chenguang Wang & Xukang Yin & Weixin Wang, 2024. "Digital economy and rural household resilience: Evidence from China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(5), pages 244-263.
    10. Jiajia Meng & Baoyu Zhao & Yuxiao Song & Xiaomei Lin, 2024. "Research on the Spatial Dynamic Evolution of Digital Agriculture—Evidence from China," Sustainability, MDPI, vol. 16(2), pages 1-19, January.

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