Bridging the Urban-Rural Gap: The Influence Mechanism of Digital Platform Development on the Urban-Rural Income Gap

Abstract

Studying the impact of digital platform development on the urban-rural income gap can further clarify the pro-poor and inclusive nature of the digital economy, which is of great significance for bridging the urban-rural divide and promoting common prosperity. This paper uses the panel data of 274 prefecture-level cities from 2015 to 2021 to construct a two-way fixed-effect model to explore the impact and internal mechanism of digital platform development on the urban-rural income gap. The results show that the development of digital platforms can significantly reduce the income gap between urban and rural areas, and the results are robust. The mechanism analysis shows that digital platforms can narrow the income gap between urban and rural areas by promoting the upgrading of industrial structure and narrowing the gap between urban and rural capabilities. Heterogeneity analysis shows that there are still obvious regional differences in the impact of digital platform development on the reduction of urban-rural income gap, and the economically developed regions can give full play to the positive effects of digital platforms. It is proposed that the government should accelerate the construction of rural platform infrastructure and data element market, promote the upgrading of industrial structure, stimulate the supply of internal and external factors, and improve farmers' digital skills to improve farmers' income, thereby narrowing the income gap between urban and rural areas, and formulate differentiated policies to support regional cooperation and achieve high-quality development.