The Spatial Effects of Digital Economy on Sustainable Urban Economic Development in China

This paper examines the nexus between the digital economy and sustainable urban economic development by considering the moderating roles of human capital and government support. This study utilizes panel data from China at the city level from 30 provinces for the period 2011–2019 and employs the Spatial Durbin model along with fixed effects, the Generalized Method of Moments (GMM), and Feasible Generalized Least Squares (FGLS) models. The results show a significant positive connection between the digital economy and sustainable urban economic development. The findings also demonstrate the significant moderating roles of human capital and government support in enhancing the connection between the digital economy and sustainable urban development. Finally, this study recommends policy implications to improve the quality of life and stimulate growth in urban areas of China.