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Digital divide or dividend? Exploring the impact of digital economy on regional gaps of high-quality economic development in China using relational data model

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  • Fan, Xiaoyan
  • Ding, Guoxuan
  • Long, Shuting
  • Dong, Yiran
  • Yan, Jiajun

Abstract

Achieving high-quality economic development (HED) necessitates coordinated regional development, with the digital economy (DE) serving as a key driver. This study investigates the spatial correlation and regional disparities in HED, emphasizing the role of the digital divide. Using provincial-level data from China spanning 2014 to 2021, the findings reveal weak spatial correlation in HED across provinces but significant spatial spillover effects. Economically developed provinces occupy central positions in the HED network, while less developed western regions remain on the periphery and primarily benefit from network externalities. Regional disparities in both DE and HED continue to widen, with the growing DE gap—particularly the third-level digital divide—exacerbating HED inequalities. This effect is most pronounced in eastern China but lacks statistical significance in central and western regions. Compared to the period of rapid economic growth, the influence of DE disparities on HED gaps has weakened in the high-quality development period. These findings provide valuable insights for bridging the digital divide, promoting DE, and fostering coordinated regional development.

Suggested Citation

  • Fan, Xiaoyan & Ding, Guoxuan & Long, Shuting & Dong, Yiran & Yan, Jiajun, 2025. "Digital divide or dividend? Exploring the impact of digital economy on regional gaps of high-quality economic development in China using relational data model," International Review of Economics & Finance, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025003855
    DOI: 10.1016/j.iref.2025.104222
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