IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v76y2025ics0275531925001345.html
   My bibliography  Save this article

The impact of the digital economy on rural industrial revitalization

Author

Listed:
  • Wang, Shucui
  • Peng, Ting
  • Du, Anna Min
  • Lin, Xiaohui

Abstract

The digital economy significantly influences the development of rural industries in China, playing a vital role in the country's economic and social progress. This study analyzes panel data from 30 Chinese provinces (2011–2021) to explore the digital economy's impact on rural industrial revitalization from a sustainable development perspective. This study finds that the digital economy positively affects rural industrial revitalization, with scientific and technological innovation acting as a positive intermediary. In addition, the impact varies regionally, following a "central > west > east" pattern, with differing effects based on rural employment levels. Furthermore, as scientific and technological innovation capabilities increase, the digital economy's influence on rural industries grows stronger. The digital economy exerts a spatial spillover effect, benefiting local rural industries but negatively impacting neighboring regions' rural industry development. These findings highlight the critical role of the digital economy in the sustainable development and revitalization of rural industries in China.

Suggested Citation

  • Wang, Shucui & Peng, Ting & Du, Anna Min & Lin, Xiaohui, 2025. "The impact of the digital economy on rural industrial revitalization," Research in International Business and Finance, Elsevier, vol. 76(C).
  • Handle: RePEc:eee:riibaf:v:76:y:2025:i:c:s0275531925001345
    DOI: 10.1016/j.ribaf.2025.102878
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531925001345
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ribaf.2025.102878?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Sun, Huaping & Edziah, Bless Kofi & Kporsu, Anthony Kwaku & Sarkodie, Samuel Asumadu & Taghizadeh-Hesary, Farhad, 2021. "Energy efficiency: The role of technological innovation and knowledge spillover," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    2. Lee, Chien-Chiang & Tang, Manting & Lee, Chi-Chuan, 2023. "Reaping digital dividends: Digital inclusive finance and high-quality development of enterprises in China," Telecommunications Policy, Elsevier, vol. 47(2).
    3. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    4. Goodell, John W. & Yadav, Miklesh Prasad & Ruan, Junhu & Abedin, Mohammad Zoynul & Malhotra, Nidhi, 2023. "Traditional assets, digital assets and renewable energy: Investigating connectedness during COVID-19 and the Russia-Ukraine war," Finance Research Letters, Elsevier, vol. 58(PA).
    5. Pan, Wenrong & Xie, Tao & Wang, Zhuwang & Ma, Lisha, 2022. "Digital economy: An innovation driver for total factor productivity," Journal of Business Research, Elsevier, vol. 139(C), pages 303-311.
    6. HUO, Peng & WANG, Luxin, 2022. "Digital economy and business investment efficiency: Inhibiting or facilitating?," Research in International Business and Finance, Elsevier, vol. 63(C).
    7. Chen, Lifeng & Wang, Kaifeng, 2022. "The spatial spillover effect of low-carbon city pilot scheme on green efficiency in China's cities: Evidence from a quasi-natural experiment," Energy Economics, Elsevier, vol. 110(C).
    8. Ying Tang & Menghan Chen, 2022. "The Impact of Agricultural Digitization on the High-Quality Development of Agriculture: An Empirical Test Based on Provincial Panel Data," Land, MDPI, vol. 11(12), pages 1-16, November.
    9. Shen, Zhiyang & Wang, Songkai & Boussemart, Jean-Philippe & Hao, Yu, 2022. "Digital transition and green growth in Chinese agriculture," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    10. Goodell, John W. & Nammouri, Hela & Saâdaoui, Foued & Ben Jabeur, Sami, 2023. "Carbon allowances amid climate change concerns: Fresh insights from wavelet multiscale analysis," Finance Research Letters, Elsevier, vol. 55(PA).
    11. Lee, Chien-Chiang & Wang, Fuhao, 2022. "How does digital inclusive finance affect carbon intensity?," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 174-190.
    12. Li, Fanghua & Zang, Dungang & Chandio, Abbas Ali & Yang, Dongmei & Jiang, Yuansheng, 2023. "Farmers' adoption of digital technology and agricultural entrepreneurial willingness: Evidence from China," Technology in Society, Elsevier, vol. 73(C).
    13. Ma, Dan & Zhu, Qing, 2022. "Innovation in emerging economies: Research on the digital economy driving high-quality green development," Journal of Business Research, Elsevier, vol. 145(C), pages 801-813.
    14. Yi-feng Zhang & Min-xuan Ji & Xiu-zhi Zheng, 2023. "Digital Economy, Agricultural Technology Innovation, and Agricultural Green Total Factor Productivity," SAGE Open, , vol. 13(3), pages 21582440231, August.
    15. Man Chen & Yun’an Long, 2024. "Empowering Rural Revitalization: Unleashing the Potential of E-commerce for Sustainable Industrial Integration," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 18813-18831, December.
    16. Serdar Yilmaz & Kingley E. Haynes & Mustafa Dinc, 2002. "Geographic and Network Neighbors: Spillover Effects of Telecommunications Infrastructure," Journal of Regional Science, Wiley Blackwell, vol. 42(2), pages 339-360, May.
    17. 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).
    18. Ronja Kirschning & Matthias Mrożewski, 2024. "Revisiting the knowledge spillover paradox: the impact of infrastructure," Small Business Economics, Springer, vol. 63(1), pages 1-20, June.
    19. Ning Xu & Desen Zhao & Wenjie Zhang & Ming Liu & He Zhang, 2022. "Does Digital Transformation Promote Agricultural Carbon Productivity in China?," Land, MDPI, vol. 11(11), pages 1-19, November.
    20. Zhao, Shuliang & Teng, Linjiao & Arkorful, Vincent Ekow & Hu, Hui, 2023. "Impacts of digital government on regional eco-innovation: Moderating role of dual environmental regulations," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    21. Jinlin Li & Litai Chen & Ying Chen & Jiawen He, 2022. "Digital economy, technological innovation, and green economic efficiency—Empirical evidence from 277 cities in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 616-629, April.
    22. Lisi Tan & Zhuodong Yang & Muhammad Irfan & Chante Jian Ding & Mingjun Hu & Jin Hu, 2024. "Toward low‐carbon sustainable development: Exploring the impact of digital economy development and industrial restructuring," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2159-2172, March.
    23. Castellacci, Fulvio & Tveito, Vegard, 2018. "Internet use and well-being: A survey and a theoretical framework," Research Policy, Elsevier, vol. 47(1), pages 308-325.
    24. Zhang, Yimeng & Ma, Xinyu & Pang, Jianing & Xing, Hailong & Wang, Jian, 2023. "The impact of digital transformation of manufacturing on corporate performance — The mediating effect of business model innovation and the moderating effect of innovation capability," Research in International Business and Finance, Elsevier, vol. 64(C).
    25. Qunyang Du & Fangxing Zhou & Tianle Yang & Min Du, 2023. "Digital Financial Inclusion, Household Financial Participation and Well-Being: Micro-Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(6), pages 1782-1796, May.
    26. Geyao Yang & Changchun Zhou & Jiekuan Zhang, 2023. "Does industry convergence between agriculture and related sectors alleviate rural poverty: evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12887-12914, November.
    27. Qi Jiang & Jizhi Li & Hongyun Si & Yangyue Su, 2022. "The Impact of the Digital Economy on Agricultural Green Development: Evidence from China," Agriculture, MDPI, vol. 12(8), pages 1-22, July.
    28. Hunjra, Ahmed Imran & Zhao, Shikuan & Goodell, John W. & Liu, Xiaoqian, 2024. "Digital economy policy and corporate low-carbon innovation: Evidence from a quasi-natural experiment in China," Finance Research Letters, Elsevier, vol. 60(C).
    29. Guo, Bingnan & Wang, Yu & Zhang, Hao & Liang, Chunyan & Feng, Yu & Hu, Feng, 2023. "Impact of the digital economy on high-quality urban economic development: Evidence from Chinese cities," Economic Modelling, Elsevier, vol. 120(C).
    30. Yi, Ming & Liu, Yafen & Sheng, Mingyue Selena & Wen, Le, 2022. "Effects of digital economy on carbon emission reduction: New evidence from China," Energy Policy, Elsevier, vol. 171(C).
    31. Jingru Xu & Xiangjing Tong & Baochen Yang, 2024. "The spatial spillover effect of carbon emission trading scheme on green innovation in China’s cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(2), pages 639-669, August.
    32. Mark D. Partridge & Marlon Boarnet & Steven Brakman & Gianmarco Ottaviano, 2012. "Introduction: Whither Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 167-171, May.
    33. Wang, Shucui & Song, Yutong & Min Du, Anna & Liang, Jia, 2024. "The digital economy and entrepreneurial dynamics: An empirical analysis of urban regions in China," Research in International Business and Finance, Elsevier, vol. 71(C).
    34. Zepu Zhang & Chen Sun & Jing Wang, 2023. "How Can the Digital Economy Promote the Integration of Rural Industries—Taking China as an Example," Agriculture, MDPI, vol. 13(10), pages 1-21, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lyu, Yanwei & Zhang, Jinning & Wang, Wenqiang & Li, Yutao & Geng, Yong, 2024. "Toward low carbon development through digital economy: A new perspective of factor market distortion," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    2. Huang, Jie & Lu, Hongyang & Du, Minzhe, 2025. "Can digital economy narrow the regional economic gap? Evidence from China," Journal of Asian Economics, Elsevier, vol. 98(C).
    3. Jian Li & Xiangchen Sheng & Shuhua Zhang & Yixuan Wang, 2024. "Research on the Impact of the Digital Economy and Technological Innovation on Agricultural Carbon Emissions," Land, MDPI, vol. 13(6), pages 1-18, June.
    4. Shen, Hongshan & Qin, Mengyao & Li, Tianyi & Zhang, Xuan & Zhao, Yang, 2024. "Digital finance and industrial structure upgrading: Evidence from Chinese counties," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    5. Zhang, Huaqing & Cai, Cen & Zhang, Xiangjian & Tu, Yongqian & Zhu, Qianyu, 2024. "Relationship between business environment and regional innovation level: Examining the moderating role of digital finance," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    6. Chen, Rui & Wang, Yufeng & Wang, Qi & Zhang, Lingling & Xiong, Ruoxi, 2025. "Unleashing the digital dividend: Exploring how the digital economy promotes the construction of new urbanization in China’s 284 prefecture-level cities?," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 818-834.
    7. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    8. Cai, Hechang & Wang, Zilong & Ji, Yi & Xu, Liuyang, 2024. "Digitalization and innovation: How does the digital economy drive technology transfer in China?," Economic Modelling, Elsevier, vol. 136(C).
    9. Rongrong Li & Qiang Wang & Ting Yang, 2025. "Digital economy and carbon efficiency: the roles of population aging and human capital," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-16, December.
    10. Liu, Baoliu & Huang, Yujie & Chen, Mengmei & Lan, Zirui, 2024. "Towards sustainability: How does the digital-real integration affect regional green development efficiency?," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 42-59.
    11. Miao, Yongming & Li, Yaokuang & Wu, Yanrui, 2024. "Digital economy and economic competitive pressure on local governments: Evidence from China," Economic Modelling, Elsevier, vol. 140(C).
    12. Horvey, Sylvester Senyo & Odei-Mensah, Jones & Moloi, Tankiso & Bokpin, Godfred A., 2024. "Digital economy, financial development and energy transition in Africa: Exploring for synergies and nonlinearities," Applied Energy, Elsevier, vol. 376(PB).
    13. Zhang, Liming & Zhao, Yuting & Liu, Liang & Sun, Helin & Wang, Yue, 2025. "The spatial effects of green-innovation coupling and coordinated development from the perspective of digital inclusive finance: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    14. Wang, Yizi & Li, Lanyi, 2024. "Digital economy, industrial structure upgrading, and residents' consumption: Empirical evidence from prefecture-level cities in China," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1045-1058.
    15. Hanjie Wang & Hao Leng & Minglu Yuan, 2025. "From opportunity to inequality: how the rural digital economy shapes intra-rural income distribution," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    16. Yuan Liu & Fangfang Dong & Jing Yu & Aijun Liu, 2024. "Examining the Impact of Digital Economy on Environmental Sustainability in China: Insights into Carbon Emissions and Green Growth," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 18044-18080, December.
    17. Dian, Jie & Song, Tian & Li, Shenglan, 2024. "Facilitating or inhibiting? Spatial effects of the digital economy affecting urban green technology innovation," Energy Economics, Elsevier, vol. 129(C).
    18. Zheng, Mingbo & Zhang, Xinyu, 2025. "Digitalization and renewable energy development: Analysis based on cross-country panel data," Energy, Elsevier, vol. 319(C).
    19. Ma, Zhuoya & Xiao, Hui & Li, Jing & Chen, Hanting & Chen, Wenhui, 2025. "Study on how the digital economy affects urban carbon emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 207(C).
    20. Zhao, Xiaoyang & Weng, Zongyuan, 2024. "Digital dividend or divide: The digital economy and urban entrepreneurial activity," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:76:y:2025:i:c:s0275531925001345. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.