Digital Divide and Regional Industrial Productivity: Evidence from China

While the global digital economy is booming, the digital divide between different regions is gradually widening. However, little is known about how this digital divide can impact regional industrial development. Using a sample from 30 provinces in China spanning from 2010 to 2021, this research investigates the influence and mechanisms of the digital divide on regional industrial productivity based on endogenous growth theory. The results indicate that as China’s digital economy continues to expand, the digital divide among regions is also becoming more pronounced over time. The regression analysis discovers the negative influence of digital divide on regional industrial productivity and further found that this negative influence is primarily realized by inhibiting industrial structure transformation and market structure optimization. This research contributes helpful insights into unraveling the connection between the digital divide and regional industrial productivity and offers theoretical guidance for policymakers to formulate policies and regulations aimed at mitigating the threat posed by the digital divide.