Research on the Impact of Digital Economy on Local Fiscal Pressure

Abstract

Based on provincial panel data from 2011 to 2022 in China, this article uses the entropy method to calculate the digital economy index of 30 provinces, and adopts a two-way fixed effects model to empirically analyze the impact mechanism of the digital economy on inter regional fiscal pressure. The research results indicate that the digital economy can alleviate regional fiscal pressure, but there are significant differences between regions, with its impact being more significant in the eastern region and relatively weaker in the central and western regions. Further intermediary testing shows that the development of the digital economy has reduced financial pressure between regions by promoting the rationalization of industrial structure. In addition, moderation analysis shows that population concentration weakens the negative impact of the digital economy on fiscal pressure, while increasing human capital levels enhances the negative impact of the digital economy on fiscal pressure.