The Impact of Digital Economy on Urban-Rural Income Gap: A Case Study of Anhui Province

Abstract

Based on the panel data of 16 prefecture-level cities in Anhui Province from 2011 to 2020, the entropy method was used to measure the digital economy development index of Anhui Province, and the dual-fixed effect model was used to explore the impact of digital economy on urban-rural income gap in Anhui province. The results show that: (1) Hefei, Wuhu and Fuyang have a higher level of digital economy development, while Chizhou, Tongling and Huangshan have a lower level of digital economy development; (2) At present, the development of digital economy in Anhui Province will significantly reduce the income inequality between urban and rural areas, and the development of digital economy in Anhui Province will cause a nonlinear U-shaped influence on the income inequality between urban and rural areas; (3) The level of urbanization and the intensity of government intervention will significantly reduce urban and rural income inequality.