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Digital dividend or digital divide? Digital economy and urban-rural income inequality in China

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  • Peng, Zhuangzhuang
  • Dan, Ting

Abstract

This study investigates the impact of the digital economy on income inequality between urban and rural areas. Panel data covering 194 cities in China from 2011 to 2018 are employed to construct a digital economy development index using the entropy value method. Nonlinear and threshold models are executed to ascertain how digital economy development influences the urban-rural income gap in China. The results reveal a U-shaped relationship between the digital economy and the urban-rural income gap. Furthermore, the threshold effect analysis demonstrates a digital divide in diverse regions due to different urbanization stages. This study furnishes empirical evidence for attaining balanced urban-rural development in the digital economy in developing countries.

Suggested Citation

  • Peng, Zhuangzhuang & Dan, Ting, 2023. "Digital dividend or digital divide? Digital economy and urban-rural income inequality in China," Telecommunications Policy, Elsevier, vol. 47(9).
    • Handle: RePEc:eee:telpol:v:47:y:2023:i:9:s0308596123001271
    DOI: 10.1016/j.telpol.2023.102616
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    Cited by:

    1. Sensen Jin & Feng Deng, 2024. "Research on Sustainable Economic Dynamics: Digital Technology Development and Relative Poverty of Urban Households," Sustainability, MDPI, vol. 16(8), pages 1-22, April.
    2. Dong Guo & Lin Li & Lu Qiao & Fengyu Qi, 2023. "Digital economy and consumption upgrading: scale effect or structure effect?," Economic Change and Restructuring, Springer, vol. 56(6), pages 4713-4744, December.
    3. Jiajia Meng & Baoyu Zhao & Yuxiao Song & Xiaomei Lin, 2024. "Research on the Spatial Dynamic Evolution of Digital Agriculture—Evidence from China," Sustainability, MDPI, vol. 16(2), pages 1-19, January.

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