Research on the impact of digital economy on the reduction of the gap between urban and rural areas

INTRODUCTION：Through the research on the relationship between digital economy and urban-rural gap, we can find out the important factors affecting the urban-rural gap, so as to promote the development of urban-rural integration and urban-rural economic growth. OBJECTIVES: Based on regression analysis and mediating effect test, this paper analyzes the impact of digital economy on the reduction of urban-rural gap and whether new urbanization plays a mediating role. Robustness test was added in the analysis process to determine the accuracy and stability of the research conclusion. METHODS: This paper adopts the methods of literature research and quantitative analysis. The article selects the panel data of 31 provinces in China, which belong to from 2011 to 2020. After Hausmann test, this paper establishes a fixed effect pattern. Then the paper empirically analyzes the relationship between new-type urbanization construction and digital economy and narrowing of the urban-rural gap through combining regression analysis, four robustness tests and mediation effect tests. RESULTS: The research indicates the following results (1) The new urbanization and digital economy have a remarkable propelling effect on reducing the gap between town and country areas. (2) There is the mediating role of new urbanization between the narrowing of the urban-rural gap and digital economy. And the mesomeric effect constitutes approximately 37.1%. CONCLUSION: Digital economy can further reduce the gap between town and country areas through the growth of new-type urbanization. The level of education development has a remarkable role in improving the narrowing of the gap between urban-rural areas.