Savior or saboteur? A nationwide study on digital economy and depression in China

Abstract

The regional boom in digital economy has provided people with remote conversations and socialization while reducing the risk of depression. This study aims to elucidate whether regional digital economy can be a savior for individual depression. The multi-source dataset collects 11,845 individuals from the China Health and Retirement Longitudinal Study 2018 (CHARLS), with the combination of corresponding regional data from China City Statistical Yearbooks. A series of regressions with integrated mediation and moderation analyses are employed to bridge the link between the digital economy and depression. The results suggest that people living in areas with a higher level of digital economy are less likely to suffer from depression. The development of the digital economy helps people find solace or air grievances more easily, thereby reducing the risk of depression. Individual information and communications technology (ICT) engagement is found to mediate the relationship between the regional digital economy and individual depression. Residence type moderates the association between the three casual pairs of digital economy, ICT engagement, and depression. Improved digitization stimulates personal engagement with ICTs, which in turn expands social connections and support. Strengthened social interactions naturally keep depression away. Moreover, the urban-rural differences further confirm the underlying mechanism. Properly embracing the new digital world can therefore benefit from the transformative potential and mitigate depressive outcomes.