The Mediating Role of Virtual Agglomeration in How ICT Infrastructure Drives Urban–Rural Integration: Evidence from China

Information and communication technology (ICT) infrastructure can facilitate urban–rural integration. However, few studies have explored the role of virtual agglomeration in the mechanisms underlying this process, which can enable geographically dispersed market participants (both urban and rural) to achieve proximity in network space through digital connectivity provided by ICT. This study uses the PLS-SEM method to empirically analyzes the relationships among ICT infrastructure, virtual agglomeration, and urban–rural integration based on data obtained from 31 provincial-level regions in China from 2012 to 2022. The results indicate that: (1) ICT infrastructure can promote urban–rural integration. (2) Virtual agglomeration plays a significant mediating role in the relationship between ICT infrastructure and urban–rural integration. In relatively developed eastern China, virtual agglomeration fully mediates the impact of ICT infrastructure on urban–rural integration. (3) Other complementary infrastructures—including transport and education—have positive moderating effects on the process of virtual agglomeration facilitated by ICT. This study advances the understanding of ICT’s effects on regional development from the perspective of employing a new form of spatial agglomeration (i.e., virtual agglomeration). Meanwhile, this study indicates that in order to address the global challenge of urban–rural divide, it is necessary to strengthen the development of ICT infrastructure in remote rural areas, while developing complementary infrastructure such as transportation or education in alignment with regional characteristics.