Spatial mobility of China’s population in the digital economy

The digital economy has emerged as a transformative force in China, reshaping labor markets and spatial population dynamics through advanced technologies and connectivity. This study examines how digital economic development influences population mobility across 289 prefecture-level cities from 2011 to 2018. Our findings reveal that digitalization significantly drives population inflows. This effect is primarily channeled through the service sector’s expansion—particularly life-oriented services—which generates substantial employment. Heterogeneity analysis shows stronger effects in larger, denser cities, highlighting agglomeration economies’ role in amplifying digital impacts. Examining the Hu Line—a historical divide separating the populous southeast from the sparse northwest—we find that digitalization enhances southeast inflows but has no significant effect in the northwest. Contrary to expectations of spatial rebalancing, digital growth reinforces China’s urban concentration. These results challenge the “death of distance” hypothesis, offering insights for urban policy and regional development strategies amid digital transformation.