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Digital infrastructure and urban-rural income gap: Empirical evidence from China

Year: 2026

Type: article

Abstract: As a cornerstone of national digital transformation strategies, digital infrastructure offers a promising pathway to address urban–rural dualism, narrow income disparities, and advance common prosperity. Using provincial panel data from 30 Chinese regions over 2011–2022, this study empirically examines how digital infrastructure affects the urban–rural income gap. Our results show that digital infrastructure significantly reduces this gap. Mediation analysis identifies three key transmission channels: expansion of non-agricultural employment, enhancement of technological innovation, and upgrading of industrial structure. The gap-reducing effect is notably stronger in central China and in provinces with higher levels of economic development. Importantly, the application layer of digital infrastructure demonstrates substantially greater effectiveness than the physical construction layer. These findings provide actionable insights for policymakers seeking to optimize digital infrastructure investments to promote inclusive growth and reduce spatial gaps.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2026.105003

Authors: Kunli Liang, Weiqi Liu

Institutions: Jinzhong University, Shanxi University of Finance and Economics

Language: English

Topic: ICT Impact and Policies

Subfield: Media Technology

Field: Engineering

Domain: Physical Sciences

SDGs: Industry, innovation and infrastructure, Reduced inequalities, No poverty, Decent work and economic growth, Sustainable cities and communities

Open Access status: gold

Estimated APC paid: $1,930