Digital economy, consumption structure and rural economic transformation: a case study of China

IntroductionPromoting rural economic transformation is an important foundation for achieving agricultural modernization. Under the background of rural revitalization strategy, digital technology is increasingly being applied in the agricultural sector, and the digital economy is becoming a new drivi...

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Main Authors: Yang Liu, Wenjuan Chen, Xu Zhang, Wenmei Liao
Format: Article
Language:English
Published: Frontiers Media S.A. 2025-02-01
Series:Frontiers in Sustainable Food Systems
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Online Access:https://www.frontiersin.org/articles/10.3389/fsufs.2025.1565067/full
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author Yang Liu
Wenjuan Chen
Xu Zhang
Wenmei Liao
Wenmei Liao
Wenmei Liao
author_facet Yang Liu
Wenjuan Chen
Xu Zhang
Wenmei Liao
Wenmei Liao
Wenmei Liao
author_sort Yang Liu
collection DOAJ
description IntroductionPromoting rural economic transformation is an important foundation for achieving agricultural modernization. Under the background of rural revitalization strategy, digital technology is increasingly being applied in the agricultural sector, and the digital economy is becoming a new driving force for China's rural economic transformation.MethodsBased on China's provincial panel data from 2013 to 2020, this paper uses the two-way fixed effect model, intermediary effect model, and panel threshold model to deeply analyze the impact and internal mechanism of the digital economy development on rural economic transformation.Results and discussionThe research shows that the digital economy significantly promotes China's rural economic transformation, and this conclusion is still valid after robustness tests such as selecting historical data as instrumental variables. The mechanism test confirms that the digital economy promotes rural economic transformation by optimizing residents' consumption structure. In addition, the digital economy has a single threshold effect on the rural economic transformation based on the level of consumption structure. After crossing the threshold value, its promotion effect on the rural economic transformation is more prominent, indicating that the impact of the digital economy on the rural economic transformation will show the non-linear characteristics of increasing ‘marginal effect' due to the different levels of consumption structure; Heterogeneity analysis found that compared to southern regions, the digital economy in northern regions has a more significant promoting effect on rural economic transformation. This study deepens the understanding of the motivation for rural economic transformation and the effects, mechanisms, and regional differences of the digital economy empowering rural economic transformation. Based on this, this paper proposes that the government fully realize the digital economy's important role in rural economic transformation, actively innovate and promote digital technology, continue to expand and strengthen the consumer Internet, adjust measures to local conditions, and try to achieve coordinated development.
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spelling doaj-art-3d1ee06aebdf4ca7a2fc9441ef2e14cd2025-08-20T02:45:56ZengFrontiers Media S.A.Frontiers in Sustainable Food Systems2571-581X2025-02-01910.3389/fsufs.2025.15650671565067Digital economy, consumption structure and rural economic transformation: a case study of ChinaYang Liu0Wenjuan Chen1Xu Zhang2Wenmei Liao3Wenmei Liao4Wenmei Liao5School of Economics and Management, Jiangxi Agricultural University, Nanchang, ChinaSchool of Economics and Management, Jiangxi Agricultural University, Nanchang, ChinaSchool of Economics and Management, Jiangxi Agricultural University, Nanchang, ChinaSchool of Economics and Management, Jiangxi Agricultural University, Nanchang, ChinaJiangxi Provincial Key Laboratory of Conservation Biology, Jiangxi Agricultural University, Nanchang, China“Three Rural” Issues Research Center, Jiangxi Agricultural University, Nanchang, ChinaIntroductionPromoting rural economic transformation is an important foundation for achieving agricultural modernization. Under the background of rural revitalization strategy, digital technology is increasingly being applied in the agricultural sector, and the digital economy is becoming a new driving force for China's rural economic transformation.MethodsBased on China's provincial panel data from 2013 to 2020, this paper uses the two-way fixed effect model, intermediary effect model, and panel threshold model to deeply analyze the impact and internal mechanism of the digital economy development on rural economic transformation.Results and discussionThe research shows that the digital economy significantly promotes China's rural economic transformation, and this conclusion is still valid after robustness tests such as selecting historical data as instrumental variables. The mechanism test confirms that the digital economy promotes rural economic transformation by optimizing residents' consumption structure. In addition, the digital economy has a single threshold effect on the rural economic transformation based on the level of consumption structure. After crossing the threshold value, its promotion effect on the rural economic transformation is more prominent, indicating that the impact of the digital economy on the rural economic transformation will show the non-linear characteristics of increasing ‘marginal effect' due to the different levels of consumption structure; Heterogeneity analysis found that compared to southern regions, the digital economy in northern regions has a more significant promoting effect on rural economic transformation. This study deepens the understanding of the motivation for rural economic transformation and the effects, mechanisms, and regional differences of the digital economy empowering rural economic transformation. Based on this, this paper proposes that the government fully realize the digital economy's important role in rural economic transformation, actively innovate and promote digital technology, continue to expand and strengthen the consumer Internet, adjust measures to local conditions, and try to achieve coordinated development.https://www.frontiersin.org/articles/10.3389/fsufs.2025.1565067/fulldigital economyupgrading consumption structurerural economic transformationmediating effectthreshold effect
spellingShingle Yang Liu
Wenjuan Chen
Xu Zhang
Wenmei Liao
Wenmei Liao
Wenmei Liao
Digital economy, consumption structure and rural economic transformation: a case study of China
Frontiers in Sustainable Food Systems
digital economy
upgrading consumption structure
rural economic transformation
mediating effect
threshold effect
title Digital economy, consumption structure and rural economic transformation: a case study of China
title_full Digital economy, consumption structure and rural economic transformation: a case study of China
title_fullStr Digital economy, consumption structure and rural economic transformation: a case study of China
title_full_unstemmed Digital economy, consumption structure and rural economic transformation: a case study of China
title_short Digital economy, consumption structure and rural economic transformation: a case study of China
title_sort digital economy consumption structure and rural economic transformation a case study of china
topic digital economy
upgrading consumption structure
rural economic transformation
mediating effect
threshold effect
url https://www.frontiersin.org/articles/10.3389/fsufs.2025.1565067/full
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