How does digitalization affect the urban-rural disparity at different disparity levels: A Bayesian Quantile Regression approach

Abstract

The digital revolution is bringing profound changes to the production, lifestyle, and governance in urban and rural areas. However, the varying impacts of different digitalization dimensions on urban-rural disparity have been understudied, particularly in developing countries. Based on 1931 county-level administrative units, this study used cluster analysis and a novel Bayesian Quantile Regression approach to explore the digitalization characteristics, and how digitalization influences urban-rural disparity at different disparity levels and in different regions. We found three types of digitalization development, including Balanced Digital Progression (29.26 %), Digital Consumption Powerhouse (17.50 %), and Digital Development Potential (53.24 %). Digitalization played an essential role in alleviating urban-rural disparity, with a more pronounced effect in areas with higher levels of disparity. The access to information infrastructure related to the first-level digital divide may exacerbate the urban-rural disparity, while the digitalization dimensions related to the second-level digital divide could mitigate the urban-rural disparity. Regarding the regional effects, information infrastructure adoption has different impacts on urban-rural disparity across various regions, while digitalization usage is consistently mitigating urban-rural disparities. By comprehensively examining the role of digitalization, we provided a scientific basis for formulating more precise and effective policies for a more balanced and integrated urban-rural development.