Can digital economy narrow the regional economic gap? Evidence from China

Abstract

The scholarly discourse surrounding the influence of digital economy (DE) advancement on economic growth has been extensive, but only a few studies have examined it from an equity perspective. Based on the panel data of Chinese provinces between 2011 and 2020, this study constructs the relational data analytical paradigm to analyze the impact of DE spatial disequilibrium on regional economic gap (REG). The results show that there are notable regional disparities in both DE and economic development. Furthermore, the equilibrium improvement of DE can reduce REG, with the magnitude of this effect increasing, albeit negatively in the eastern region. Additionally, the study suggests that the equilibrium development of capital accumulation and industrial structure can also contribute to the reduction of REG. These findings suggest that promoting DE equilibrium development can be an effective strategy for narrowing REG.