Open Access Journal Article

Digital economy, entrepreneurial activity, and common prosperity: Evidence from China

by Tongtong Zhao 1 Fangyi Jiao 1,*  and  Zhongwei Wang 1
School of economics and business administration, Heilongjiang University, Harbin, China
Author to whom correspondence should be addressed.
Received: 18 December 2022 / Accepted: 15 January 2023 / Published: 16 January 2023


Based on the provincial panel data of China from 2011 to 2019 for a total of 9 years, this paper uses the entropy method to construct a comprehensive measure of the digital economy and common prosperity. We theoretically analyzed the impact mechanism of the digital economy on common prosperity using the econometric model. The study found that the digital economy can significantly promote the realization of common prosperity. The digital economy has a significant impact on the development and sustainability of common prosperity. The results of the impact mechanism show that the digital economy promotes common prosperity by increasing entrepreneurial activity. Heterogeneity research shows that the role of digital economy in promoting common prosperity changes with different regions. Specifically, the digital economy in the central and western regions can significantly promote the realization of common prosperity, but this impact is not significant in the eastern region. From the regression results of the digital economy, we can see that industrial digitalization and digital infrastructure play a greater role in promoting common prosperity. Economic openness affects the promotion of digital economy to common prosperity. The conclusion of this work provides an important research reference for the development of digital economy and the realization of common prosperity.

Copyright: © 2023 by Zhao, Jiao and Wang. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
Show Figures

Share and Cite

ACS Style
Zhao, T.; Jiao, F.; Wang, Z. Digital economy, entrepreneurial activity, and common prosperity: Evidence from China. Journal of Information Economics, 2023, 1, 5.
AMA Style
Zhao T, Jiao F, Wang Z. Digital economy, entrepreneurial activity, and common prosperity: Evidence from China. Journal of Information Economics; 2023, 1(1):5.
Chicago/Turabian Style
Zhao, Tongtong; Jiao, Fangyi; Wang, Zhongwei 2023. "Digital economy, entrepreneurial activity, and common prosperity: Evidence from China" Journal of Information Economics 1, no.1: 5.
APA style
Zhao, T., Jiao, F., & Wang, Z. (2023). Digital economy, entrepreneurial activity, and common prosperity: Evidence from China. Journal of Information Economics, 1(1), 5.

Article Metrics

Article Access Statistics


  1. ALI A, HASABALLAH A. (2016). Entrepreneurship Development and Poverty Reduction: Empirical Survey from Somalia.
  2. Chen LJ, Yu JX, Xu Iridina. (2021). Construction of the Common prosperity Index Model. Governance Research, 37(04): 5-16+2. DOI:10.15944/j.cnki.33-1010/d.2021.04.001
  3. Chen, Xinxin, Duan, Bo. (2022). Has the digital economy narrowed the urban-rural gap? --An empirical test based on a mediating effects model.. World Geography Research, 31(02): 280-91
  4. Du, M., Hou, Y., Zhou, Q., & Ren, S. (2022). Going green in China: How does digital finance affect environmental pollution? Mechanism discussion and empirical test, Environmental Science and Pollution Research, 7(1):1–15.
  5. Han, Liangliang, Peng, Yi, Meng, Qingna. (2022). Digital Inclusive Finance, Entrepreneurial Activity and Common prosperity - An Empirical Study Based on Inter-Provincial Panel Data in China. Soft Science: 1-18.
  6. Hao, X., Li, Y., Ren, S., Wu, H., & Hao, Y. (2023). The role of digitalization on green economic growth: Does industrial structure optimization and green innovation matter?. Journal of Environmental Management, 325, 116504.
  7. Hao, Y., Huang, J., Guo, Y., Wu, H., & Ren, S. (2022). Does the legacy of state planning put pressure on ecological efficiency? Evidence from China. Business Strategy and the Environment, 31:403–424.
  8. Huang Qunhui, Yu Yongze, Zhang Songlin. (2019). Internet development and manufacturing productivity improvement: intrinsic mechanisms and China's experience. China Industrial Economy, (08): 5-23. DOI:10.19581/j.cnki.ciejournal.2019.08.001
  9. Li Shouwei. (2021). A comparative study of regional innovation and entrepreneurship activity in China. Research World, (05): 68-76. DOI:10.13778/j.cnki.11-3705/c.2021.05.008
  10. Li YJ. (2022). Theoretical logic, realization path and policy suggestions of digital economy for common prosperity. Journal of Chang'an University (Social Science Edition): 1-11
  11. Li Z, He Hao Miao. (2021). A study on the impact of digital economy on entrepreneurial activity - an empirical analysis based on inter-provincial panel data and spatial Durbin model. Price Theory and Practice, (09): 18-22. DOI:10.19851/j.cnki.CN11-1010/F.2021.09.274
  12. Li, Z., Tuerxun, M., Cao, J., Fan, M., and Yang, C. (2022). Does inclusive finance improve income: A study in rural areas. AIMS Mathematics 7, 20909-20929.doi:10.3934/math.20221146
  13. Liu Peilin, Qian Tao, Huang Xianhai, et al. (2021). The connotation, realization path and measurement method of common prosperity. Management World, 37(08): 117-29. DOI:10.19744/j.cnki.11-1235/f.2021.0111
  14. Liu R, Zhang YW. (2022). Digital economy and common prosperity - an empirical study based on spatial threshold effect. Journal of Southwest University for Nationalities (Humanities and Social Sciences Edition), 43(03): 90-9
  15. Liu Xinyi, Huang Ying, Huang Sirei, et al. (2022). Digital inclusive finance and common prosperity: theoretical mechanisms and empirical facts. Research in Financial Economics: 1-15
  16. Liu, P., Zhao, Y., Zhu, J., and Yang, C. (2022). Technological industry agglomeration, green innovation efficiency, and development quality of city cluster. Green Finance 4, 411-435.doi:10.3934/GF.2022020
  17. Luo M.Z., Liu Z.Y. (2022). Digital Technology Adoption, Social Network Expansion and Farmers' Common prosperity. Southern Economics, (03): 1-16
  18. Ouyang, R. F. (2021). The logic, mechanism and path of digital economy for common prosperity. Journal of Chang'an University (Social Science Edition): 1-15
  19. Ren, S., Hao, Y., & Wu, H. (2022a). Digitalization and environment governance: does internet development reduce environmental pollution? Journal of Environmental Planning and Management, 1-30.
  20. Ren, S., Hao, Y., Xu, L., Wu, H., & Ba, N. (2021). Digitalization and energy: How does internet development affect China's energy consumption?. Energy Economics, 98, 105220.
  21. Ren, S., Liu, Z., Zhanbayev, R., & Du, M. (2022b). Does the internet development put pressure on energy-saving potential for environmental sustainability? Evidence from China. Journal of Economic Analysis, 1(1), 50-65.
  22. Wang, S., Yang, C., and Li, Z. (2022). Green Total Factor Productivity Growth: Policy-Guided or Market-Driven? International Journal of Environmental Research and Public Health 19, 10471.doi:10.3390/ijerph191710471
  23. Wu, H., Ba, N., Ren, S., Xu, L., Chai, J., Irfan, M., ... & Lu, Z. N. (2022). The impact of internet development on the health of Chinese residents: Transmission mechanisms and empirical tests. Socio-Economic Planning Sciences, 81, 101178.
  24. Wu, H., Ba, N., Ren, S., Xu, L., Chai, J., Irfan, M., ... & Lu, Z. N. (2022). The impact of internet development on the health of Chinese residents: Transmission mechanisms and empirical tests. Socio-Economic Planning Sciences, 81, 101178.
  25. Wu, H., Hao, Y., Ren, S., Yang, X., & Xie, G. (2021a). Does internet development improve green total factor energy efficiency? Evidence from China. Energy Policy, 153, 112247.
  26. Wu, H., Xue, Y., Hao, Y., & Ren, S. (2021b). How does internet development affect energy-saving and emission reduction? Evidence from China. Energy Economics, 103, 105577.
  27. Xia, J. C., Liu, C. (2021). Digital economy for shared prosperity: paths of action and policy design. Economic and Management Studies, 42(09): 3-13. DOI:10.13502/j.cnki.issn1000-7636.2021.09.001
  28. Xie, Gloria, Shen, Yan, Zhang, Haoxing, et al. (2018). Can digital finance promote entrepreneurship? -- Evidence from China. Econometrics (Quarterly), 17(04): 1557-80. DOI:10.13821/j.cnki.ceq.2018.03.12
  29. Yang, X., Wang, W., Su, X., Ren, S., Ran, Q., Wang, J., & Cao, J. (2022). Analysis of the influence of land finance on haze pollution: An empirical study based on 269 prefecture‐level cities in China. Growth and Change, 4, 1-29.
  30. Yang, X., Wu, H., Ren, S., Ran, Q., & Zhang, J. (2021). Does the development of the internet contribute to air pollution control in China? Mechanism discussion and empirical test. Structural Change and Economic Dynamics, 56, 207-224.
  31. Ye W-P, Li X-C, Chen Q-Y. (2018). The impact of migrant population on urban entrepreneurial activity: mechanisms and evidence. Economic Research, 53(06): 157-70
  32. Zhang Erzhen, Li Yuanben, Dai Xiang. (2022). High level of openness and common prosperity: theoretical logic and practical path. Nanjing Social Science, (04): 32-40. DOI:10.15937/j.cnki.issn1001-8263.2022.04.005.
  33. Zhang Laiming, Li Jianwei. (2021). The connotation, strategic goals and policy measures of promoting common prosperity. Reform, (09): 16-33
  34. Zhang, Jinlin, Dong, Xiaofan, Li, Jian. (2022). Can digital inclusive finance promote common prosperity? --An empirical study based on micro household data. Financial Research: 1-15. DOI:10.16538/j.cnki.jfe.20220316.101
  35. Zhao T, Zhang Z, Liang S-K. (2020). Digital economy, entrepreneurial activity and high quality development: empirical evidence from Chinese cities. Management World, 36(10): 65-76. DOI:10.19744/j.cnki.11-1235/f.2020.0154
  36. Zhong YF, Dai TY, Zhang JW, et al. (2021). Statistical measurement of the contribution of digital economy to China's economic growth; proceedings of the 2021 (7th) National Student Statistical Modeling Competition, Tianjin, China
  37. Zhou, Q., Du, M., & Ren, S. (2022). How government corruption and market segmentation affect green total factor energy efficiency in the post-COVID-19 era: Evidence from China. Frontiers in Energy Research, 10, 1-15.
  38. Zhu, T. F., Zhang, X. C., Lin, S. H. (2022). How platform companies can promote common prosperity in the digital economy. Research in Financial Economics: 1-12