Exploring the Pathways Through Which the Digital Economy Drives Common Prosperity in the Context of Sustainable Development

The digital economy, as a major economic form after the agricultural and industrial economies, has become a new driving force in the development of the national economy, and it may provide opportunities for rural economic development through new businesses such as the platform economy and live e-commerce. However, there may also be a risk of a digital divide, and the mechanism of its impact on shared prosperity needs to be scientifically verified. Based on the panel data of 2243 counties in China from 2011 to 2021, the article empirically examines how the digital economy promotes common prosperity among regions and the spatial spillover effects of the digital economy. The findings suggest that, first, the geographic distance matrix reveals a positive spatial relationship between the digital economy and shared prosperity, and the phenomenon of geo-graphic agglomeration is observed, which manifests itself as a high-high-low aggregation. Second, the digital economy has had an impact that transcends space, enabling counties to both “expand the cake” and “share the cake” more equitably. Third, the coordinated, inclusive, and structurally optimizing effects of the digital economy help counties achieve common prosperity by upgrading the level of public services and promoting the upgrading of industrial structure. Ultimately, the digital economy promotes the common prosperity and long-term development of county economies through innovation-driven and optimized resource allocation.