Research on the Integration of the Digital and Real Economy

Abstract

This article develops an assessment framework for digital-real economies integration, encompassing three key areas: foundation, application, and environment. It employs a comprehensive approach including entropy value, kernel density analysis, Dagum decomposition of Gini coefficients, Moran's I, grey relational modeling to explore development level, spatiotemporal evolution patterns, and the factors propelling digital-real economy integration. The findings reveal a steady upward trend in the integration level across China as a whole and within its eight major economic zones. Spatiotemporally, while absolute disparities have widened in a few regions, most areas show a notable reduction in relative differences and polarization. Synergy in integration levels is particularly weak between coastal areas and the vast northwest, with inter-regional differences identified as the primary source of overall disparity. Moreover, the integration exhibits significant positive spatial clustering, with nearly half of the provinces at a low integration level and about 77% demonstrating high stability without transition over the study period. Key external drivers, in descending order of influence, include economic advancement levels, industrial composition evolution, financial development level, marketization level, human capital polarization, and openness to foreign investment. The findings highlight the importance of tailored regional policies and balanced development strategies, which hold global relevance for fostering sustainable and inclusive economic convergence in the digital era.