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How Digital Technologies Promote the Development of Modern Rural Industrial Systems: Based on the Dual Mechanisms of Supply and Demand

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  • Yangyang Ji

    (College of Economics and Management, Huainan Normal University, Huainan 232038, China)

  • Yongjing Wang

    (School of Economics and Management, Shihezi University, Shihezi 832003, China)

Abstract

Digital technologies are profoundly reshaping the landscape of rural industrial development. Existing studies have yet to systematically reveal their impact mechanisms on modern rural industrial systems, with limited attention paid to the dual mechanisms of demand and supply. Based on panel data from 30 provinces (2011–2022), this study empirically examines the influence of digital technologies on modern rural industrial system development and its transmission pathways. The results demonstrate that digital technologies significantly promote the development of modern rural industrial systems, exhibiting a time-lag effect. On the demand side, growth of rural and urban consumption serves as crucial transmission channels, while on the supply side, effects manifest through agricultural agglomeration, manufacturing agglomeration, and producer services agglomeration. Heterogeneity analysis reveals that grain-deficit regions are primarily driven by internal demand mechanisms, whereas consumption-balanced areas show significant external demand effects. Topographically flat regions with robust industrial foundations exhibit distinct responses to internal and external supply mechanisms, respectively. This research deepens the understanding of how digital technologies influence modern rural industrial systems and provides practical insights for their systematic development.

Suggested Citation

  • Yangyang Ji & Yongjing Wang, 2026. "How Digital Technologies Promote the Development of Modern Rural Industrial Systems: Based on the Dual Mechanisms of Supply and Demand," Sustainability, MDPI, vol. 18(10), pages 1-27, May.
    • Handle: RePEc:gam:jsusta:v:18:y:2026:i:10:p:4749-:d:1939384
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