The Influence of Digital Economy on Urban-rural Income Gap and Countermeasures

Abstract

This paper examines the dual impact of the digital economy on the urban-rural income gap in China and proposes corresponding countermeasures. With the rapid development of technologies such as big data, artificial intelligence, and 5G, the digital economy has become a key driver of economic growth and structural transformation. However, while it offers opportunities to narrow the urban-rural income gap through inclusive effects-such as expanding market access, fostering entrepreneurship, improving financial inclusion, and facilitating knowledge flow-it may also exacerbate inequality due to the "digital divide." This divide manifests in disparities in infrastructure, digital skills, value distribution in industrial chains, and capital-technology substitution. To address these challenges, the study proposes a series of policy recommendations aimed at maximizing the inclusive potential of the digital economy while mitigating its divisive effects. These include strengthening rural digital infrastructure, enhancing digital literacy among rural residents, promoting the deep integration of digital technologies with agriculture and rural industries, innovating digital financial services, and improving the policy and governance environment. By implementing these measures, the digital economy can better contribute to narrowing the urban-rural income gap and advancing common prosperity.