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The Impact of Digital Village Construction on County-Level Economic Growth and Its Driving Mechanisms: Evidence from China

Author

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  • Pingping Wang

    (International College Beijing, China Agricultural University, Beijing 100083, China)

  • Chaozhu Li

    (China Institute for Rural Studies, Tsinghua University, Beijing 100084, China)

  • Chenghao Huang

    (International College Beijing, China Agricultural University, Beijing 100083, China)

Abstract

Digital village construction is the key to future rural development in China. This study has empirically examined the impact of digital village construction on county-level economic growth in China, utilizing non-balanced panel data from 16 provinces and 622 counties for the years from 2018 to 2021. The study also investigated the underlying mechanisms and conducted heterogeneity and robustness tests using various analytical methods, including instrumental variables and the difference-in-differences (DID) approach. The findings reveal that digital village construction significantly enhances county-level economic growth, with a more pronounced effect observed in southern regions, eastern regions, and non-agricultural counties. The primary mechanism through which digital village construction drives economic growth at the county level is by promoting entrepreneurship. This study not only points out the key to digital village construction in China, but also enriches the theoretical research on digital village construction for economic growth. However, due to data limitations and the short time span of digital village construction, the results of the study are correct only for the period 2018–2021 in China. As digital village construction continues to progress, its impact on economic growth is likely to be even greater.

Suggested Citation

  • Pingping Wang & Chaozhu Li & Chenghao Huang, 2023. "The Impact of Digital Village Construction on County-Level Economic Growth and Its Driving Mechanisms: Evidence from China," Agriculture, MDPI, vol. 13(10), pages 1-14, September.
    • Handle: RePEc:gam:jagris:v:13:y:2023:i:10:p:1917-:d:1251416
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    References listed on IDEAS

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    1. 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 1-20, May.
    2. Ying Liu & Haoyi Zhang & Manxiu Ning & Linping Wang, 2024. "Has Digital Village Construction Narrowed the Urban–Rural Income Gap: Evidence from Chinese Counties," Sustainability, MDPI, vol. 16(13), pages 1-25, June.
    3. Yupan Zhao & Xiaofeng Zhao & Jielun Yang, 2024. "Coupling Coordination and Influencing Factors Between Digital Village Development and Agricultural and Rural Modernization: Evidence from China," Agriculture, MDPI, vol. 14(11), pages 1-23, October.
    4. Zijun Mao & Xiyue Zhu & Qi Zou & Wen Jin, 2024. "How Can Digital Villages Improve Basic Public Services Delivery in Rural Areas? Evidence from 1840 Counties in China," Agriculture, MDPI, vol. 14(10), pages 1-20, October.
    5. Shaoyang Zhao & Mengxue Li & Xiang Cao, 2024. "Empowering Rural Development: Evidence from China on the Impact of Digital Village Construction on Farmland Scale Operation," Land, MDPI, vol. 13(7), pages 1-19, June.
    6. Qixuan Zhang & Yuxin Yang & Xue Li & Pingping Wang, 2024. "Digitalization and Agricultural Green Total Factor Productivity: Evidence from China," Agriculture, MDPI, vol. 14(10), pages 1-13, October.
    7. Jiaxuan Li & Zhiyuan Peng, 2024. "Impact of Digital Villages on Agricultural Green Growth Based on Empirical Analysis of Chinese Provincial Data," Sustainability, MDPI, vol. 16(21), pages 1-27, November.

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