IDEAS home Printed from https://ideas.repec.org/a/fec/journl/v17y2022i4p643-668.html
   My bibliography  Save this article

Digital Economy Enables High-Quality Economic Development: Theoretical Mechanisms and Empirical Evidence

Author

Listed:
  • GE Heping

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • WU Fuxiang

    (School of Economics, Nanjing University, Nanjing 210093, China)

Abstract

Digital economy has become the primary motivation for high-quality economic development. Upon comprehensively analyzing the connotation of digital economy, this paper constructs an evaluation system from development environment, digital industrialization, industrial digitalization, and digital governance to measure China’s digital economy index from 2016 to 2018 using the entropy-based TOPSIS method. Also, based on the improved Feder dual sector model, this paper discusses the theoretical mechanism of digital economy promoting high-quality economic development directly and through improving economic efficiency and economic structure, and carries out an empirical test. According to findings, on the one hand, China is scaling up digital economy and accelerating digital transformation; on the other hand, the greater the likelihood that high-quality economic development is constrained by low economic efficiency and unreasonable economic structure, the greater the role of digital economy in promoting high-quality economic development. Therefore, this paper puts forward recommendations for China's high-quality economic development, such as advancing new infrastructure construction, developing digital economy, improving economic efficiency and economic structure, and transforming the government governance model.

Suggested Citation

  • GE Heping & WU Fuxiang, 2022. "Digital Economy Enables High-Quality Economic Development: Theoretical Mechanisms and Empirical Evidence," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 17(4), pages 643-668, December.
    • Handle: RePEc:fec:journl:v:17:y:2022:i:4:p:643-668
    as

    Download full text from publisher

    File URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-015-022-0027-7
    Download Restriction: no
    ---><---

    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:fec:journl:v:17:y:2022:i:4:p:643-668. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Frank H. Liu (email available below). General contact details of provider: .

    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.