China’s digital economy development: incentives and challenges
Abstract
The development of the digital economy has become a new way to respond to the epidemic impact effectively. With the innovative breakthrough of information and communication technology, the digital and real economies are deeply integrated. The digital economy has become an important driving force for the transformation of economic momentum and development. Panel data from 31 provinces in China from 2010 to 2019 were selected for analysis. In the first stage, the study constructed the evaluation index system of digital economy development. Then, the quality development index of the digital economy is calculated by using the entropy method. Finally, the main factors of digital economy development are analysed by spatial measurement. The research results prove that: (1) the development of China’s digital economy in 2010–2019 has gradually increased; (2) the development of the digital economy has a positive correlation between regions and has a spatial spillover effect; (3) the level of economic development, urbanisation, government support, industrial structure, and the level of opening will promote the development of the digital economy.
First published online 30 November 2022
Keyword : digital economy, entropy method, index, influencing factors, spatial measurement, sustainable development
How to Cite
Chen, Y., Xu, S., Lyulyov, O., & Pimonenko, T. (2023). China’s digital economy development: incentives and challenges. Technological and Economic Development of Economy, 29(2), 518–538. https://doi.org/10.3846/tede.2022.18018
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Akimov, O., Karpa, M., Parkhomenko-Kutsevil, O., Kupriichuk, V., & Omarov, A. (2021). Entrepreneurship education of the formation of the e-commerce managers professional qualities. International Journal of Entrepreneurship, 25(S2), 1–8.
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Chen, F., Jiang, G., & Wang, W. (2019). Institutional quality and its impact on the facilitation of foreign direct investment: Empirical evidence from the Belt and Road countries. Journal of Chinese Economic and Foreign Trade Studies, 12(3), 167–188. https://doi.org/10.1108/JCEFTS-07-2019-0041
Chen, X., Yan, D., & Chen, W. (2021a). Can the digital economy promote FinTech development? Growth and Change, 53(1), 221–247. https://doi.org/10.1111/grow.12582
Chen, Y., Kwilinski, A., Chygryn, O., Lyulyov, O., & Pimonenko, T. (2021b). The green competitiveness of enterprises: Justifying the quality criteria of digital marketing communication channels. Sustainability, 13(24), 13679. https://doi.org/10.3390/su132413679
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Cosmulese, C. G., Grosu, V., Hlaciuc, E., & Zhavoronok, A. (2019). The influences of the digital revolution on the educational system of the EU countries. Marketing and Management of Innovations, 3, 242–254. https://doi.org/10.21272/mmi.2019.3-18
Datta, A., & Agarwal, S. (2004). Telecommunications and economic growth: A panel data approach. Applied Economics, 36(15), 1649–1654. https://doi.org/10.1080/0003684042000218552
Fernández-Portillo, A., Almodóvar-González, M., & Hernández-Mogollón, R. (2020). Impact of ICT development on economic growth. A study of OECD European union countries. Technology in Society, 63, 101420. https://doi.org/10.1016/j.techsoc.2020.101420
Haiyan, Q., & Yu, J. (2020). Measurement and influence factors of Zhejiang digital economy level – is based on Entropy-Tobit model. Journal of Zhejiang Shuren University (Humanities and Social Sciences), 20(06), 40–47.
Hojeghan, S. B., & Esfangareh, A. N. (2011). Digital economy and tourism impacts, influences and challenges. Procedia – Social and Behavioral Sciences, 19, 308–316. https://doi.org/10.1016/j.sbspro.2011.05.136
Jiang, X. (2020). Digital economy in the post-pandemic era. Journal of Chinese Economic and Business Studies, 18(4), 333–339. https://doi.org/10.1080/14765284.2020.1855066
Jiankui, B., Li, X., & Yajing, Y. (2016). Convergence test of interprovincial information economy development in China. Statistics and Decision Making, 21, 122–126.
Jiao, S., & Sun, Q. (2021). Digital economic development and its impact on econimic growth in China: Research based on the prespective of sustainability. Sustainability, 13(18), 10245. https://doi.org/10.3390/su131810245
Jinya, L. I. U., Dongchuan, W. A. N. G., Ranhao, S. U. N., Feicui, W. A. N. G., Bingxu, H. U., Junhe, C. H. E. N., & Zhichao, S. U. N. (2020). Study on spatial relevance of ecological-land loss based on change trajectory analysis method. Geographical Research, 39(1), 01000103.
Jorgenson, D. W., Stiroh, K. J., Gordon, R. J., & Sichel, D. E. (2000). Raising the speed limit: US economic growth in the information age. Brookings Papers on Economic Activity, 31(1), 125–235.
Jovanović, M., Dlačić, J., & Okanović, M. (2018). Digitalization and society’s sustainable development – Measures and implications. Zbornik radova Ekonomskog fakulteta u Rijeci: časopis za ekonomsku teoriju i praksu, 36(2), 905–928. https://doi.org/10.18045/zbefri.2018.2.905
Korcsmaros, E., Machova, R., Seben, Z., & Zsigmond, T. (2021). The regional innovations governance: Slovakia with regard to convergence criteria. Marketing and Management of Innovations, 1, 170–180. https://doi.org/10.21272/mmi.2021.1-13
Kostetskyi, P. (2021). Does digitalization lead to better transparency: Bibliometric approach. Business Ethics and Leadership, 5(3), 102–107. https://doi.org/10.21272/bel.5(3).102-107.2021
Kryshtanovych, M., Akimova, L., Akimov, O., Kubiniy, N., & Marhitich, V. (2021). Modeling the process of forming the safety potential of engineering enterprises. International Journal of Safety and Security Engineering, 11(3), 223–230. https://doi.org/10.18280/ijsse.110302
Kwilinski, A. (2019). Implementation of blockchain technology in accounting sphere. Academy of Accounting and Financial Studies Journal, 23(2S), 1–6.
Li, Z., & Liu, Y. (2021). Research on the spatial distribution pattern and influencing factors of digital economy development in China. IEEE Access, 9, 63094–63106. https://doi.org/10.1109/ACCESS.2021.3075249
Linkov, I., Trump, B. D., Poinsatte-Jones, K., & Florin, M. V. (2018). Governance strategies for a sustainable digital world. Sustainability, 10(2), 440. https://doi.org/10.3390/su10020440
Liu, Z., & Chen, W. (2017). An empirical study on the relationship between China’s Internet development level and economic growth. Economic Geography, 8, 108–113.
Molchanova, K. (2021). Organization of aviation enterprises’ interaction based on the digital platform. Virtual Economics, 4(1), 77–97. https://doi.org/10.34021/ve.2021.04.01(4)
Moroz, M. (2017). The level of development of the digital economy in Poland and selected European countries: A comparative analysis. Foundations of Management, 9(1), 175–190. https://doi.org/10.1515/fman-2017-0014
OECD. (2014). Measuring the digital economy: A new perspective. OECD Publishing. https://doi.org/10.1787/9789264221796-en
Pee, L. G. (2016). Customer co-creation in B2C e-commerce: Does it lead to better new products? Electronic Commerce Research, 16(2), 217–243. https://doi.org/10.1007/s10660-016-9221-z
Pradhan, R. P., Arvin, M. B., Nair, M., Bennett, S. E., & Bahmani, S. (2019). Short-term and long-term dynamics of venture capital and economic growth in a digital economy: A study of European countries. Technology in Society, 57, 125–134. https://doi.org/10.1016/j.techsoc.2018.11.002
Semenova, K., & Tarasova, K. (2017). Establishment of the new digital world and issues of cyber-risks management. Marketing and Management of Innovations, 3, 236–244. https://doi.org/10.21272/mmi.2017.3-22
Shi, T., Qiao, Y., & Zhou, Q. (2021). Spatiotemporal evolution and spatial relevance of urban resilience: Evidence from cities of China. Growth and Change, 52(4), 2364–2390. https://doi.org/10.1111/grow.12554
Shpak, N., Kuzmin, O., Dvulit, Z., Onysenko, T., & Sroka, W. (2020). Digitalization of the marketing activities of enterprises: Case study. Information, 11(2), 109. https://doi.org/10.3390/info11020109
Sui, D. Z., & Rejeski, D. W. (2002). Environmental impacts of the emerging digital economy: The e-for-environment e-commerce? Environmental Management, 29(2), 155–163. https://doi.org/10.1007/s00267-001-0027-X
Sun, T., Ding, S., & Xu, X. (2021). An iterative stacked weighted auto-encoder. Soft Computing, 25(6), 4833–4843. https://doi.org/10.1007/s00500-020-05490-7
Tapscott, D., & Agnew, D. (2000). Governance in the digital economy. Finance & Development, 36(4), 34–37.
Teece, D. J. (2018). Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world. Research Policy, 47(8), 1367–1387. https://doi.org/10.1016/j.respol.2017.01.015
Thompson, P., Williams, R., & Thomas, B. (2013). Are UK SMEs with active web sites more likely to achieve both innovation and growth? Journal of Small Business and Enterprise Development, 20(4), 934–965. https://doi.org/10.1108/JSBED-05-2012-0067
Tkachenko, V., Kwilinski, A., Korystin, O., Svyrydiuk, N., & Tkachenko, I. (2019). Assessment of information technologies influence on financial security of economy. Journal of Security and Sustainability Issues, 8(3), 375–385. https://doi.org/10.9770/jssi.2019.8.3(7)
Trushkina, N. (2019). Development of the information economy under the conditions of global economic transformations: features, factors and prospects. Virtual Economics, 2(4), 7–25. https://doi.org/10.34021/ve.2019.02.04(1)
Turcan, V., Gribincea, A., & Birca, I. (2014). Digital economy – a premise for economic development in the 20th century. Economie si Sociologie: Revista Teoretico-Stiintifica, 2, 109–115.
United Nations Conference on Trade and Development. (2019). Digital economy report 2019. Value creation and capture: Implications for developing countries. UNCTAD. Retrieved January 20, 2022, from https://unctad.org/system/files/official-document/der2019_overview_en.pdf
Vyshnevskyi, O. (2019). Unity of digital and virtual economies within concept of Dataism. Virtual Economics, 2(3), 7–21. https://doi.org/10.34021/ve.2019.02.03(1)
Woetzel, J., Seong, J., Wang, K. W., Manyika, J., Chui, M., & Wong, W. (2017a). China’s digital economy: A leading global force. McKinsey Global Institute.
Woetzel, J., Seong, J., Wang, K., Manyika, J., Chui, M., & Wong, W. (2017b). Open interactive popup China’s digital economy: A leading global force. McKinsey.
Wu, H. X., & Yu, C. (2022). The impact of the digital economy on China’s economic growth and productivity performance. China Economic Journal, 15(2), 153–170. https://doi.org/10.1080/17538963.2022.2067689
Yin, Z., Gong, X., Guo, P., & Wu, T. (2019). What drives entrepreneurship in digital economy? Evidence from China. Economic Modelling, 82, 66–73. https://doi.org/10.1016/j.econmod.2019.09.026
Zhang, M. L., & Chen, M. S. (2019). China’s digital economy: Opportunities and risks (Working Paper 2019(016)). International Monetary Fund. https://doi.org/10.5089/9781484389706.001
Zhao, F., Wallis, J., & Singh, M. (2015). E-government development and the digital economy: A reciprocal relationship. Internet Research, 25(5), 734–766. https://doi.org/10.1108/IntR-02-2014-0055
Zhong, Y., & Mao, W. (2019). The spatial pattern and influencing factors of digital economy in the Yangtze River Economic Belt. Journal of Chongqing University (Social Sciences Edition), 1–12.