The Impact Of Digital Economy Development On Urban-rural Income Gap

With the rapid development of technology,the world is making rapid progress.The continuous innovation of the Internet and information technology has promoted a new round of digital technology revolution and become the focus of global attention.The digital economy is increasingly becoming a new driving force to promote China’s social and economic development.The Internet plays an important role in all walks of life.However,due to the gap in the development of the digital economy in various regions and the unreasonable distribution of resources,the imbalance in the development of the digital economy is becoming more and more prominent,which has brought many negative effects to the society.When regional development is unbalanced,the urban-rural gap will become more obvious,which will lead to greater social problems.The urban-rural income gap has always been a key issue in China’s economic development process,so it has been concerned by scholars.In order to measure the development of the digital economy,this paper selects 21 main indicators and uses the principal component analysis method to construct the digital economy indicator system.At the same time,taking into account other factors that may affect the urban-rural income gap,in order to better solve the urban-rural income gap.By taking the level of economic development,urbanization,openness,industrial structure,education expenditure and financial development as the control variables,combined with the provincial panel data from 2011 to 2020,we constructed a spatial Durbin model,and used Stata15 statistical analysis software for empirical analysis to explore the impact of digital economic development on the urban-rural income gap.After empirical analysis,this paper draws the corresponding conclusions:1.The urban-rural income gap has spatial correlation between different provinces,so economic and regional differences need to be considered in research.This gap is not only influenced by the digital economy in the local and surrounding areas,but also by the surrounding areas.The overall effect of the digital economy is to narrow the income gap between urban and rural areas.Its direct effect is not significant,but its indirect effect is significant,that is,for regions related to economic and geographical distance,it can significantly reduce the income gap.Digital development can provide new development opportunities and ways for economic development,thereby bringing new opportunities to reduce the income gap between urban and rural areas in China.And puts forward effective policy recommendations based on this in order to achieve the best results.