Research on the integrated development of the digital economy and the real economy

With the sustained advancement of China's digital economy and real economy, their integration has emerged as a prominent area of academic inquiry. This study employs the entropy weight method to assess the developmental levels of China's digital economy and real economy, evaluating their integrated development status. Subsequently, panel regression analysis is conducted to elucidate the direction and magnitude of factors influencing this integration. Furthermore, a threshold model is constructed to investigate the nonlinear threshold effects of these determinants. The empirical findings yield several key insights. First, from 2013 to 2022, China witnessed a consistent upward trajectory in the integration of its digital and real economies, albeit with pronounced regional disparities. Second, the developmental levels of both the digital economy and the real economy exhibit statistically significant positive effects on integration, a result robust across all four regions. Third, threshold regression analysis reveals the presence of nonlinear effects when the following variables serve as threshold parameters, digital economy development level, real economy development level, regional economic development, demographic structure, government support, foreign investment, and environmental conditions. Notably, as these threshold variables optimize, both sectors demonstrate promotional effects on integrationhowever, the marginal contribution of the digital economy exhibits diminishing returns, whereas that of the real economy displays increasing returns. Based on these findings, this study proposes the following policy recommendations: (1) prioritize coordinated development between the digital and real economies, (2) align talent cultivation strategies with contemporary developmental paradigms, (3) strengthen governmental support for economic transformation, and (4) incorporate environmental sustainability into digital economy development initiatives.