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MEASURING THE DEVELOPMENT LEVELS OF CHINA’S DIGITAL ECONOMY AND ANALYZING ITS SPATIO-TEMPORAL DISPARITIES

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Volume 1, Issue 3, Pp 80-95, 2024

DOI: https://doi.org/10.61784/ssm3061

Author(s)

ChunE Li1*, LiJun Wu1, Huan Cao2, ChenMin Nin1

Affiliation(s)

1School of International Business, Zhejiang Yuexiu University, Shaoxing 312000, Zhejiang, China.

2School of English Studies, Zhejiang Yuexiu University, Shaoxing 312000, Zhejiang, China.

Corresponding Author

ChunE Li

ABSTRACT

In light of the rapid progress of information technology, the digital economy has now become a core driving force for global economic expansion. As one of the world's largest economies, the development level of China’s digital economy and its spatial-temporal evolution have garnered significant attention. This study constructs an evaluation system comprising 16 measurement indicators across four dimensions: hardware and software infrastructure, industrial digitization, innovation-driven environment and digital communication volume, using panel data 2015-2023. The entropy method is employed for measurement, with verification that this method conforms to the law of entropy increase and exhibits model robustness. Through comparative analysis of σ-convergence curves and Theil Index decomposition, this study reveals regional disparities and their dynamic changes in the Development Level of Digital Economy (DLDE) in China. The findings indicate an overall upward trend in the Development Levels of Digital Economy (DLDEs) across provinces, with inter-regional differences surpassing intra-regional ones, the latter primarily stemming from the northern coastal regions. Initially, digital communication volume was a major factor contributing to these differences; however, hardware and software infrastructure gradually became key factors. In light of these findings, it is recommended to enhance regional coordination, strengthen the construction of hardware and software infrastructure, bolster innovation-driven capabilities, and adopt differentiated development strategies to achieve high-quality national digital economy growth.

KEYWORDS

Digital economy; Spatio-temporal disparities; Theil Index; Entropy method

CITE THIS PAPER

ChunE Li, LiJun Wu, Huan Cao, ChenMin Nin. Measuring the development levels of China's digital economy and analyzing its spatio-temporal disparities. Social Science and Management. 2024, 1(3): 80-95. DOI: https://doi.org/10.61784/ssm3061.

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