Author(s)

Zhen Wang

School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, China.

This paper explores the impact of the digital economy on the income gap between urban and rural residents using panel data from 30 provinces from 2011 to 2021. The study reveals that the digital economy shows a “U”-shaped trend in affecting the income gap between urban and rural residents: initially, it will contribute to the narrowing of the income gap, but over time, the gap is likely to widen. Moreover, this impact is regionally heterogeneous, as it is evident in the eastern and central regions, while in the western region, the development of the digital economy has helped to reduce the income disparity between urban and rural residents. In addition, the level of technology market development plays a moderating role in the “U-shaped” impact of the digital economy on the income gap between urban and rural residents. The conclusions provide policymakers with an indication of how policies should be formulated and adapted in different regions to capitalize on the development of the digital economy for balanced socio-economic development.

China, Digital Economy, Urban-Rural Income Gap, Level of Technology Market Development, U-Shaped

Wang, Z. (2024) The Impact of the Digital Economy on the Rural-Urban Income Gap—Moderating Effects Based on the Level of Technology Market Development. Open Journal of Social Sciences, 12, 335-352. doi: 10.4236/jss.2024.124023.