The Mechanism Through Which Digital Infrastructure Development Influences Common Prosperity in Urban and Rural Areas
Abstract
China Pilot Program as a quasi-natural experiment, this research investigates the effect of digital infrastructure on urban-rural common prosperity using panel data from 288 Chinese prefecture-level cities from 2008 to 2023. A multi-period Difference-in-Differences (DID) model is
applied. The results show that digital infrastructure enhances the level of urban-rural common prosperity. Moreover, these findings are confirmed by parallel trend tests. Further analysis indicates that digital infrastructure influences common prosperity via two pathways: enhancing
internet usage and expanding employment in the digital industry. These impacts contribute to better resource distribution, increase income
possibilities and decrease urban-rural differences.
Keywords
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DOI: http://dx.doi.org/10.70711/frim.v4i8.10009
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