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Impact of digital village development on the urban–rural income gap—a spillover effects perspective

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  • Shan, TieCheng
  • Shi, RunZhe

Abstract

This paper uses provincial panel data from 2011 to 2021 in China to examine the spatial spillover effects and internal mechanisms of digital rural development on the urban–rural income gap. Results show that digital rural development significantly narrows the gap and curbs its expansion in neighboring regions. The eastern region experiences larger direct and total effects, while the central and western regions display stronger spatial spillover effects. Digital rural development reduces the income gap by advancing agricultural technology and facilitating rural labor transfer. These findings suggest the need to vigorously pursue digital rural strategies and expand opportunities for labor transfer and employment to further narrow the urban–rural income gap.

Suggested Citation

  • Shan, TieCheng & Shi, RunZhe, 2025. "Impact of digital village development on the urban–rural income gap—a spillover effects perspective," Finance Research Letters, Elsevier, vol. 86(PC).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pc:s1544612325018112
    DOI: 10.1016/j.frl.2025.108557
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