Can the digital economy contribute to rural revitalization? A case of from China?

by Yuanquan Lu, Yuan Meng, Li Chen, Yuan Zhang

This study establishes a multi-dimensional evaluation index system for measuring digital economy and rural revitalization. It explores the impact of digital economy on China’s rural revitalization and its mechanism using dynamic balanced panel data of 30 provinces and cities in China from 2012 to 2020 and adopting two-way fixed effect and mediated effect models. The results reveal that digital economy promotes rural revitalization in China; however, differences exist in its impact on industrial prosperity, ecological livability, civilized rural customs, effective governance, and affluent living under rural revitalization. Heterogeneity analysis shows that the impact of digital economy on rural revitalization is more pronounced in eastern China, with high levels of new urbanization and areas for big-data experimentation. In addition, this thesis verifies that technological innovation and human capital are two important transmission paths through which digital economy affects rural revitalization in China. The conclusions provide theoretical guidance and practical support for China and other developing countries to vigorously develop their digital economies and comprehensively revitalize the countryside.