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An Analysis of the Impact of the Digital Economy on High-Quality Economic Development in China—A Study Based on the Effects of Supply and Demand

Author

Listed:
  • Jianing Pang

    (School of Economics and Business Administration, Heilongjiang University, Harbin 150080, China)

  • Fangyi Jiao

    (School of Economics and Business Administration, Heilongjiang University, Harbin 150080, China)

  • Yimeng Zhang

    (School of Economics and Management, Harbin University of Science and Technology, Harbin 150080, China)

Abstract
The development of information technology draws forth the digital economy, representing the third form of economic and social development following the agricultural and industrial economies. It represents one of the new era’s most important economic growth points. How to use the advantages of the digital economy to escape the “Malthusian trap” has always been an essential part of the attention of economists and policymakers. This paper investigates the degree of development of China’s digital economy and employs the entropy method and fixed-effect model to test how the digital economy has impacted high-quality economic development. Based on the study, digital economy development significantly promotes high-quality economic development. After controlling various factors that influence high-quality economic development and using instrumental variables to correct endogenous estimation biases, the results remain stable. The analysis also finds that the digital economy in economically backward areas has a more significant impact on high-quality economic development. In addition, the analysis of Nax’s “Vicious Circle of Poverty” theory shows that the digital economy can promote high-quality economic development through the supply and demand effect. Therefore, it is imperative to actively promote digital economy development and form a dynamic balance between supply and demand at a higher level by stimulating the consumption potential to ensure high-quality economic growth.

Suggested Citation

  • Jianing Pang & Fangyi Jiao & Yimeng Zhang, 2022. "An Analysis of the Impact of the Digital Economy on High-Quality Economic Development in China—A Study Based on the Effects of Supply and Demand," Sustainability, MDPI, vol. 14(24), pages 1-21, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16991-:d:1007355
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    Cited by:

    1. Zhang, Meng & Wang, Hong & Wang, Hao & Osmadi, Atasya Binti, 2024. "Digital economy, land resource mismatch, and urban housing costs: Evidence from China's digital governance policy perspective," Resources Policy, Elsevier, vol. 92(C).
    2. Xiaoyu He & Bo Li, 2023. "A Study on the Influence of Green Industrial Policy on Urban Green Development: Based on the Empirical Data of Ecological Industrial Park Pilot Construction," Sustainability, MDPI, vol. 15(13), pages 1-29, June.
    3. Afolabi, Joshua Adeyemi, 2023. "Advancing digital economy in Africa: The role of critical enablers," Technology in Society, Elsevier, vol. 75(C).
    4. Xing Zhang & Jian Zhong & Huanfang Wang, 2023. "Does the Development of Digital Economy Affect Environmental Pollution?," Sustainability, MDPI, vol. 15(12), pages 1-18, June.
    5. Yaoyao Wang & Yuanpei Kuang, 2023. "Evaluation, Regional Disparities and Driving Mechanisms of High-Quality Agricultural Development in China," Sustainability, MDPI, vol. 15(7), pages 1-20, April.

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