The Digital Economy, Market-based Factor Allocation and Shared Prosperity

Abstract

The digital economy is leading China's quality change, efficiency change and power change, and has become a new driving force to promote the development of common affluence. This paper measures the level of digital economy development in three dimensions: digital infrastructure, digital industrialization and industrial digitization, and the level of common affluence development in two dimensions: overall affluence and shared affluence, and then empirically examines the relationship between digital economy, factor market allocation and common affluence using provincial panel data from 2014-2021. It is found that the digital economy development has a significant positive contributing influence on common affluence. Factor market-oriented allocation is a mediating variable in the process of digital economy contributing to the development of common wealth, and digital economy accelerates the development of common wealth through optimizing factor market-oriented allocation. The above findings have some reference significance for exploring how to solidly promote common affluence in the era of digital economy in China.