Navigating Digital Transformation: Synergistic Pathways and Challenges in County-level Public Service Development

In recent years, the expansion of the digital economy has reshaped the provision of public services, with a more pronounced influence in less-developed counties than in urban areas. In response, China has introduced a series of initiatives to integrate digital technologies into public service systems, accelerating their digital transition. Focusing on the interplay between these two domains, this study constructs an evaluation framework for “digital economy–public services,” in which indicator weights are derived via the entropy method. The degree of coupling and coordination between the two systems is then measured, and their influence on the quality of county-level public services is examined using a GMM approach. Empirical evidence from Shaanxi counties suggests that although both systems are improving steadily, the digital economy is advancing more rapidly, resulting in a growing disparity. Over time, their relationship has evolved from initial friction to a stage of coordination, yet it has not reached full integration. Findings also indicate that stronger coordination is associated with higher-quality public service outcomes. These results offer an evidence-based reference for policy design and contribute to extending welfare and regional economics perspectives in the Chinese setting.