Effect of Digital Economy Development on Rural-Urban Income Disparity: Evidence from China

Promoting income equality between urban and rural residents is one of the main goals of China’s social progress and economic development. It is also a necessary means to achieve “common prosperity.” Digital economy can effectively promote economic development, the adjustment of industry structure and industry upgrading, as well as increase the disposable income of urban and rural residents, which is theoretically beneficial to rural-urban income disparity. An empirical analysis is conducted based on the data of 30 provinces, municipalities, and autonomous regions in China from 2013 to 2020. The findings demonstrate that the growth of digital economy helps lessen rural-urban income disparity and has a significant effect in East China and North China.