A novel Spatial Econometric Model Approach to Analyze the Association Between Digital Economy and Consumption Upgrading

This paper examines the association between the digital economy and consumption upgrading in five coastal cities in China from 2016 to 2020, using a spatial econometric model. The results indicate that consumption upgrading exhibits significant spatial agglomeration. The development of the digital economy can facilitate the level of consumption upgrading and has a positive spilling over effect on the level of consumption upgrading in neighboring regions, thereby narrowing the spatial differences in consumption upgrading between regions. The mediation effect suggests that the digital economy can promote industrial upgrading, which in turn promotes consumption upgrading. To promote sustainable consumption, China should continue to develop the digital economy, upgrade traditional industries, and coordinate digital economy development across all regions.