The impact of digital economy on high-quality economic development: Research based on the consumption expansion

Abstract

Studies have found that the digital economy plays a positive role in promoting high-quality economic development. Meanwhile, the digital industrialization and industrial digitalization have given rise to new demands and supply modes of consumption. It is necessary to analyze the role of consumption expansion in the impact of digital economy on high-quality economic development. Based on Chinese provincial panel data, we first applied the entropy weight method to construct the digital economy index and the high-quality economic development index. And on this basis, it was verified that the digital economy can positively promote the high-quality development of the inverted U-shaped structural economy. Then we separately used the mediation and the threshold effect models to analyze the role of consumption expansion in empowering high-quality development in the digital economy. Regional heterogeneity was further taken into account. The results dedicate that consumer demand and the digital economy have a partial or complete mediating effect. The promotion of high-quality development by the digital economy can be affected by the threshold of consumption expansion, which is manifested in the marginal incremental effect due to the growth of consumption supply. On the contrary, the growth of consumer demand has led to the inverted U-shape of the digital economy to promote high-quality economic development. In the heterogeneity analysis, the threshold effect also varied greatly. This research enriches the theoretical achievements and reveals the impact of consumption expansion on the digital economy affecting the high-quality development, which may provide certain reference for other countries and regions.