The spatial effects of digital economy on urban-rural consumption gap: A spatial Durbin model

The high penetration of the digital economy is viewed as a potential for enhancing rural consumption capacity due to its diffusion effect. Related research has limitations such as insufficient theoretical analysis, low data availability, and lack of spatial dimension analysis. Drawing on inclusive growth theory for the local effect and spatial economics for interregional spillovers, this study examines 202 Chinese cities from 2011 to 2019 using a Spatial Durbin Model. The research results indicate that the digital economy can not only directly narrow the local urban-rural consumption gap, but also narrow the urban-rural consumption gap in neighboring areas more strongly. This study enriches the understanding of the digital economy in narrowing the urban-rural development gap.