How does digital economy affect urban-rural integration? An empirical study from China

Urban-rural integration (URI) plays a significant and irreplaceable role in promoting China's ongoing modernization. The digital economy (DE) has increasingly provided new opportunities for the development of URI. Despite these advancements, few studies have delved into the interaction between DE and URI. To address this gap, this paper explores the impact of DE on URI in China and examines the underlying driving mechanisms. Specifically, the study constructed a measurement system for URI across six dimensions (population integration, industrial integration, land integration, ecological integration, public integration, and science and education integration), after which we undertook a regression analysis. The results showed that: first, DE significantly promoted URI; second, the promotion effect of DE on URI was more pronounced in China's eastern region, non-border regions, large cities, and cities with a per capita GDP exceeding 100,000 CNY; and third, DE affects URI through three paths (labor transformation, green technological innovation, and financial resource allocation). Based on the theoretical evidence provided by our findings, we also draw out a series of policy recommendations for improving URI in China.