The impact and mechanism of the digital economy on common prosperity

  • LI Jia-mei ,
  • XIE Hui
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Received date: 2024-12-30

  Revised date: 2025-03-29

  Online published: 2025-10-09

Abstract

As the core driving force of a new wave of technological revolution and industrial transformation, the digital economy is profoundly reshaping traditional economic structures and modes of social development. It not only promotes high-quality economic growth but also provides new pathways and momentum for achieving common prosperity.Using the Difference-in-Differences (DID) method, this study systematically examines the causal effects and mechanisms of digital economy and common prosperity based on balanced panel data from 286 cities in China during the period from 2011 to 2021.The research findings indicate that the digital economy is an indispensable driving engine for advancing common prosperity, playing a fundamental, structural, and strategic role. However, risks such as the digital divide and platform monopolies warrant close attention. Based on these findings, targeted policy recommendations are proposed: Expanding digital infrastructure to less developed areas can promote balanced regional development and help the eastern, central, and western regions share the benefits of growth; The inclusive growth characteristics of the digital economy can help narrow income disparities; Institutional development and digital governance capabilities need to be strengthened; A better integration of an effective market and an enabling government should be pursued.

Cite this article

LI Jia-mei , XIE Hui . The impact and mechanism of the digital economy on common prosperity[J]. Urban Problems, 2025 , 359(6) : 95 -103 . DOI: 10.13239/j.bjsshkxy.cswt.250609

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