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An Investigation of the Impact of Cultural Distance on the Digital Economy in China

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  • Jiafeng Gu

    (Peking University)

Abstract

The digital economy has become a driving force for global economic development, resulting in high demand for balanced regional development. Using surname distance as a proxy variable for cultural distance, this study examined the impact of cultural differences on the development of a regional digital economy. The results of the analysis of panel data from 31 Chinese provinces from 2011 to 2019 indicated that the development of a region's digital economy positively contributes to the development of the digital economy in areas of cultural proximity. Further analysis of the mechanisms of cultural differences in the digital economy showed that cultural distance affects the development of the digital economy in a province through three mechanisms: birth rate, divorce rate, and the share of small families. Moreover, the findings suggest regional, divorce, and demographic heterogeneity in the impact of cultural distance on the digital economy.

Suggested Citation

  • Jiafeng Gu, 2025. "An Investigation of the Impact of Cultural Distance on the Digital Economy in China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(5), pages 16312-16337, November.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:5:d:10.1007_s13132-025-02591-2
    DOI: 10.1007/s13132-025-02591-2
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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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