Does the Digital Economy Promote Coordinated Urban-Rural Development? Evidence from China

Urban-rural coordination development is a key factor in achieving sustainable development. The research sample consisted of panel data for 30 provinces in China for the period from 2011 to 2020. Our aim was to investigate whether and how the digital economy affects coordinated urban-rural development by using a panel data model, a spatial Durbin model (SDM), and a mediating effects model. The results indicate that (1) the growth of the digital economy has increased the level of coordinated urban-rural development directly and indirectly; (2) the coordinated development of urban and rural areas and the spatial distribution of the digital economy are highly correlated, with eastern regions generally experiencing a high level of agglomeration and central and western regions having a low level of agglomeration; (3) the digital economy can promote coordinated urban-rural development by reducing the income gap between urban and rural areas; and (4) the direct and the spatial promotion effects of digital economy development on coordinated urban-rural development appear to be stronger in the eastern region, insignificant in the central region, and to have a significant direct inhibition, as well as a significant spatial spillover effect, in the western region. This study provides a reference for China and other developing countries similar to China on how to promote coordinated urban and rural development in the development process of the digital economy.