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The Impact of Digital Economy on Urban Development Quality -- Empirical Evidence from 289 Prefecture-Level Cities in China

Wenshi Luo, Jinghao Lu

Abstract


This study uses panel data for 289 Chinese cities (2012–2024) to build an urban development quality index. The index draws on
12 indicators grouped into four dimensions—economic growth, social services, infrastructure, and ecological environment—and is aggregated with the entropy method. A two-way fixed effects model estimates how the digital economy shapes urban development quality. Across
all cities, digital economy growth raises urban development quality, but the gains are far from uniform: infrastructure benefits the most, the
ecological environment barely moves. Peripheral cities gain about 2.2 times as much as central cities. The digital economy, in short, is not the
preserve of large cities—places at earlier stages of development stand to gain the most.

Keywords


Digital economy; Urban development quality; Two-way fixed effects; Dimensional heterogeneity; Regional disparities

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References


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DOI: http://dx.doi.org/10.70711/frim.v4i8.10023

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