The Impact Of Digital Economy On Common Prosperity: Space-time Pattern And Impact Mechanism

China’s digital economy has developed well in recent years,and its contribution to economic growth has gradually increased.The continuous development of the economy has increased regional income,but the income gap between regions has been widening,which violates the concept of common prosperity.As an emerging economy,can the digital economy narrow the regional income gap and raise common prosperity? Based on this issue,this paper analyzes the impact of the digital economy on common prosperity and its impact mechanism,and analyzes the transmission mechanism from the perspective of marketization,industrial structure upgrading and labor factor mismatch.This paper provides policy recommendations for developing the digital economy and promoting common prosperity at the urban level.Based on the calculation of the digital economy and common prosperity index of265 prefecture-level cities in China from 2012 to 2020,this paper introduces the fixed effect model,spatial measurement,and intermediary effect to analyze the linear impact of the digital economy on common prosperity and its impact mechanism.The instrumental variable method is used to analyze the endogenous problems of the model,and the replacement calculation method,tail reduction processing and DK-FE are used to test the robustness,and the PSM-DID method is used to analyze the effectiveness of the "Broadband China" digital policy.Considering that the impact of digital economy on common prosperity may have nonlinear effects,the quadratic term and threshold model of digital economy are introduced for nonlinear analysis.Findings of this research are as follows:(1)The spatiotemporal change trend of digital economy and common prosperity index is obvious.The development level of the national digital economy is constantly improving.The common prosperity first rises and then falls,fluctuates within a certain range,and the change trend of the digital economy and the common prosperity has certain differences at the time,space and urban levels;(2)The regression results of spatial measurement show that there is a spatial spillover effect on the promotion of common prosperity by numbers,which has a greater impact on the region than on the neighboring regions;(3)The digital economy can promote the common prosperity of the region,which is partly achieved by improving the degree of regional marketization and the advanced level of industrial structure;(4)The impact of digital economy on common prosperity is affected by the regional economic and financial development level.In areas with better financial development level,digital economy has a significant role in promoting common prosperity;(5)The threshold model and the quadratic term model show that the digital economy has a nonlinear impact on common prosperity.When the level of the digital economy continues to improve,it first inhibits common prosperity and then promotes common prosperity.When the mismatch level of labor factors is high to a certain extent,the role of digital economy in promoting common prosperity will be reduced.Therefore,strengthening policy guidance,improving the construction of urban network infrastructure and the level of financial development,and reducing the level of mismatch of labor factors play an extremely important role in promoting common prosperity in the digital economy.