The Impacts of Digital Economy on Balanced and Sufficient Development in China: A Regression and Spatial Panel Data Approach

The digital economy can change the proportions and types of production factors, gradually replace traditional backward production factors, reconstruct the division of labor and cooperation system, and improve productivity, which is an important basis for balanced and sufficient development. This paper measures the comprehensive level of the digital economy and balanced and sufficient development, by using Chinese provincial panel data from 2013 to 2021, and uses the panel fixed effect model, mediation effect model, and spatial econometric model to examine the digital economy's effect on balanced and sufficient development as well as the digital economy's mechanism. The results show that the digital economy has significantly promoted balanced and sufficient development, though there are obvious regional heterogeneity and spatial spillover effects, and the relevant conclusions are still valid after an endogenous treatment and a robustness test. The total factor productivity is an important mechanism for the digital economy to affect balanced and sufficient development.

Automated summary

The digital economy has the potential to transform production factors, replace traditional ones, and enhance productivity, thus serving as a crucial foundation for balanced and sufficient development. This research examines the impact and mechanism of the digital economy on balanced and sufficient development using Chinese provincial panel data from 2013 to 2021, employing various models such as the panel fixed effect model, mediation effect model, and spatial econometric model. The findings demonstrate that the digital economy significantly promotes balanced and sufficient development, albeit with regional disparities and spatial spillover effects. Furthermore, the study confirms the relevance of these conclusions through endogenous treatment and robustness testing.