Has the Advancement of the Digital Economy Improved the Well-being of the Population? --Empirical Study Based on Chinese Provincial Panel Data

Abstract

Promoting the long-term prosperity of a country by exploring the relationship between the digital economy and residents' happiness holds great significance. This research quantifies the extent of digital economy progress through the utilization of the Critic approach. The investigation assesses the evolution in disparities in digital economy development levels across various provinces. Since happiness is a discrete ordered response variable, this paper utilizes an ordered probit model to investigate the impact relationship, incorporating individual characteristic variables. Furthermore, this study takes the sense of social justice as the mediating variable to test whether the development level of digital economy has a mediating effect on residents' happiness. The empirical results imply that the disparity in digital economy development levels among provinces gradually decreases over time, and boosting digital economy development positively make contributions to improving residents' happiness. The impact effect comprises both direct and indirect effects; specifically, digital economy development directly affects residents' happiness and indirectly influences it by enhancing their sense of social fairness. Based on these conclusions, this paper offers relevant recommendations to promote national prosperity and enhance residents' happiness.