Research on the Impact of Digital Economy on Farmers' Wealth and Prosperity- From the Perspective of Enhancing Rural Human Capital

The digital economy, as an important driving force for promoting high-quality economic development, has a significant impact on the prosperity and well-being of farmers. Based on the panel data of Chinese provinces from 2013 to 2020, this article first elaborates on the theoretical mechanisms between the digital economy, rural human capital, and farmers' wealth and prosperity. Based on this, empirical research is conducted around the relationship between the three. Research has found that- firstly, the estimated coefficient of the digital economy on farmers' wealth and prosperity is significantly positive, indicating that the development of the digital economy has significantly improved the level of farmers' wealth and prosperity; Secondly, rural human capital plays a certain intermediary role between the digital economy and the prosperity of farmers. The development of the digital economy enhances the level of rural human capital to improve the level of farmers' prosperity; Thirdly, the positive effect of the digital economy on the prosperity of farmers will be influenced by the single threshold of rural human capital, and compared to low levels of rural human capital, this positive effect is significantly enhanced at high levels of rural human capital. Therefore, in order to effectively promote the improvement of farmers' wealth and prosperity, a differentiated and dynamic digital economy development strategy should be implemented.