IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i5p4688-d1089295.html
   My bibliography  Save this article

Does the Development of the Digital Economy Promote Common Prosperity?—Analysis Based on 284 Cities in China

Author

Listed:
  • Li Chen

    (College of Economics & Management, Anhui Jianzhu University, Hefei 230022, China)

  • Yuanbo Zhang

    (College of Economics & Management, Anhui Jianzhu University, Hefei 230022, China)

Abstract

Common prosperity is the essential requirement of socialism and an important feature of Chinese-style modernization. Data from 284 cities in China from 2011 to 2020 were collected to construct an evaluation system of the digital economy and common prosperity and establish relevant econometric models to explore their impact, spatial spillover, and mechanism. It is found that: (1) the digital economy has an obvious role in promoting common prosperity, this promotion role is dynamic and nonlinear, and the digital economy’s promotion is more obvious in low-level digital economy regions; (2) the digital economy has obvious externalities, and there is a spatial spillover effect in the process of promoting common prosperity; (3) resource allocation efficiency plays a mediating role in the process of promoting common prosperity development in the digital economy. Finally, countermeasures and suggestions are proposed in four aspects: strengthening the development of the digital economy, increasing investment in digital infrastructure, enhancing the digital governance capacity of the government, and building a digital economy demonstration zone. The research results deepen the understanding of the digital economy and common prosperity and provide some insights for the ultimate realization of common prosperity.

Suggested Citation

  • Li Chen & Yuanbo Zhang, 2023. "Does the Development of the Digital Economy Promote Common Prosperity?—Analysis Based on 284 Cities in China," Sustainability, MDPI, vol. 15(5), pages 1-16, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4688-:d:1089295
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/5/4688/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/5/4688/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    2. Umair Akram & Melinda Timea Fülöp & Adriana Tiron-Tudor & Dan Ioan Topor & Sorinel Căpușneanu, 2021. "Impact of Digitalization on Customers’ Well-Being in the Pandemic Period: Challenges and Opportunities for the Retail Industry," IJERPH, MDPI, vol. 18(14), pages 1-21, July.
    3. Hongbo Zhao & Xiao Zheng & Lin Yang, 2022. "Does Digital Inclusive Finance Narrow the Urban-Rural Income Gap through Primary Distribution and Redistribution?," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    4. Nathan Nunn & Nancy Qian, 2014. "US Food Aid and Civil Conflict," American Economic Review, American Economic Association, vol. 104(6), pages 1630-1666, June.
    5. Shuaitao Jiao & Qiubi Sun, 2021. "Digital Economic Development and Its Impact on Econimic Growth in China: Research Based on the Prespective of Sustainability," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    6. Mary O'Mahony & Michela Vecchi, 2005. "Quantifying the Impact of ICT Capital on Output Growth: A Heterogeneous Dynamic Panel Approach," Economica, London School of Economics and Political Science, vol. 72(288), pages 615-633, November.
    7. Jinqi Su & Ke Su & Shubin Wang, 2021. "Does the Digital Economy Promote Industrial Structural Upgrading?—A Test of Mediating Effects Based on Heterogeneous Technological Innovation," Sustainability, MDPI, vol. 13(18), pages 1-24, September.
    8. Lianying Yao & Xiaoxiao Ma, 2022. "Has digital finance widened the income gap?," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-20, February.
    9. Nanak Kakwani & Xiaobing Wang & Ning Xue & Peng Zhan, 2022. "Growth and Common Prosperity in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(1), pages 28-57, January.
    10. Wei Qian & Huan Liu & Fanghui Pan, 2022. "Digital Economy, Industry Heterogeneity, and Service Industry Resource Allocation," Sustainability, MDPI, vol. 14(13), pages 1-18, June.
    11. Jonas Hjort & Jonas Poulsen, 2019. "The Arrival of Fast Internet and Employment in Africa," American Economic Review, American Economic Association, vol. 109(3), pages 1032-1079, March.
    12. Lv, Chengchao & Song, Jie & Lee, Chien-Chiang, 2022. "Can digital finance narrow the regional disparities in the quality of economic growth? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 502-521.
    13. Carlsson, Bo, 2004. "The Digital Economy: what is new and what is not?," Structural Change and Economic Dynamics, Elsevier, vol. 15(3), pages 245-264, September.
    14. Eric LABAYE & Jaana REMES, 2015. "Digital Technologies and the Global Economy's Productivity Imperative," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(100), pages 47-64, 4th quart.
    15. Lam, Pun-Lee & Shiu, Alice, 2010. "Economic growth, telecommunications development and productivity growth of the telecommunications sector: Evidence around the world," Telecommunications Policy, Elsevier, vol. 34(4), pages 185-199, May.
    16. Yuhan Wang & Zenghui Huo & Dongpo Li & Mei Zhang, 2022. "Evaluation of Common Prosperity Level and Regional Difference Analysis along the Yangtze River Economic Belt," IJERPH, MDPI, vol. 19(19), pages 1-16, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nan Hao & Mingxing Ji, 2023. "Development of Platform Economy and Urban–Rural Income Gap: Theoretical Deductions and Empirical Analyses," Sustainability, MDPI, vol. 15(9), pages 1-25, May.
    2. Guo, Dong & Li, Lin & Pang, Guoguang, 2024. "How does digital inclusive finance affect county's common prosperity: Theoretical and empirical evidence from China," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 340-358.
    3. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Senhua Huang & Lingming Chen, 2023. "The Impact of the Digital Economy on the Urban Total-Factor Energy Efficiency: Evidence from 275 Cities in China," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    2. Lingzhang Kong & Jinye Li, 2022. "Digital Economy Development and Green Economic Efficiency: Evidence from Province-Level Empirical Data in China," Sustainability, MDPI, vol. 15(1), pages 1-26, December.
    3. Zhiqiang Zhou & Wenyan Liu & Pengfei Cheng & Zhenjin Li, 2022. "The Impact of the Digital Economy on Enterprise Sustainable Development and Its Spatial-Temporal Evolution: An Empirical Analysis Based on Urban Panel Data in China," Sustainability, MDPI, vol. 14(19), pages 1-23, September.
    4. Mao Wu & Ying Ma & Yu Gao & Zhanhui Ji, 2024. "The impact of digital economy on income inequality from the perspective of technological progress-biased transformation: evidence from China," Empirical Economics, Springer, vol. 67(2), pages 567-607, August.
    5. Jiaoning Zhang & Xiaoyu Ma & Jiamin Liu, 2022. "How Can the Digital Economy and Human Capital Improve City Sustainability," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    6. Wang, Lianghu & Shao, Jun, 2024. "The energy saving effects of digital infrastructure construction: Empirical evidence from Chinese industry," Energy, Elsevier, vol. 294(C).
    7. Senhua Huang & Feng Han & Lingming Chen, 2023. "Can the Digital Economy Promote the Upgrading of Urban Environmental Quality?," IJERPH, MDPI, vol. 20(3), pages 1-21, January.
    8. Yao Zhao & Xuena Kong & Mahmood Ahmad & Zahoor Ahmed, 2023. "Digital Economy, Industrial Structure, and Environmental Quality: Assessing the Roles of Educational Investment, Green Innovation, and Economic Globalization," Sustainability, MDPI, vol. 15(3), pages 1-24, January.
    9. Lu, Jing & Xiao, Qinglan & Wang, Taoxuan, 2023. "Does the digital economy generate a gender dividend for female employment? Evidence from China," Telecommunications Policy, Elsevier, vol. 47(6).
    10. Yuqi Zhu & Siwei Shen & Linyu Du & Jun Fu & Jian Zou & Lina Peng & Rui Ding, 2023. "Spatial and Temporal Interaction Coupling of Digital Economy, New-Type Urbanization and Land Ecology and Spatial Effects Identification: A Study of the Yangtze River Delta," Land, MDPI, vol. 12(3), pages 1-27, March.
    11. Yang Liu & Yanlin Yang & Huihui Li & Kaiyang Zhong, 2022. "Digital Economy Development, Industrial Structure Upgrading and Green Total Factor Productivity: Empirical Evidence from China’s Cities," IJERPH, MDPI, vol. 19(4), pages 1-23, February.
    12. Xie, Qichang & Ma, Di & Raza, Muhammad Yousaf & Tang, Songlin & Bai, Dingchuan, 2023. "Toward carbon peaking and neutralization: The heterogeneous stochastic convergence of CO2 emissions and the role of digital inclusive finance," Energy Economics, Elsevier, vol. 125(C).
    13. Li, Chengming & Huo, Peng & Wang, Zeyu & Zhang, Weiguang & Liang, Feiyan & Mardani, Abbas, 2023. "Digitalization generates equality? Enterprises’ digital transformation, financing constraints, and labor share in China," Journal of Business Research, Elsevier, vol. 163(C).
    14. Guoge Yang & Feng Deng & Yifei Wang & Xianhong Xiang, 2022. "Digital Paradox: Platform Economy and High-Quality Economic Development—New Evidence from Provincial Panel Data in China," Sustainability, MDPI, vol. 14(4), pages 1-26, February.
    15. Maryam Farhadi & Rahmah Ismail & Masood Fooladi, 2012. "Information and Communication Technology Use and Economic Growth," PLOS ONE, Public Library of Science, vol. 7(11), pages 1-7, November.
    16. Zhou Jiang & Maoxia Zeng & Mingming Shi, 2023. "E‐commerce and Consumption Inequality in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(5), pages 61-86, September.
    17. Sawng, Yeong-wha & Kim, Pang-ryong & Park, JiYoung, 2021. "ICT investment and GDP growth: Causality analysis for the case of Korea," Telecommunications Policy, Elsevier, vol. 45(7).
    18. Yunyan Jiang & Feng Deng, 2022. "Multi-Dimensional Threshold Effects of the Digital Economy on Green Economic Growth?—New Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-22, October.
    19. Lee, Chien-Chiang & Yan, Jingyang & Wang, Fuhao, 2024. "Impact of population aging on food security in the context of artificial intelligence: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    20. Songqin Zhao & Diyun Peng & Huwei Wen & Huilin Song, 2022. "Does the Digital Economy Promote Upgrading the Industrial Structure of Chinese Cities?," Sustainability, MDPI, vol. 14(16), pages 1-19, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4688-:d:1089295. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.