The impact of the digital economy on China's coordinated regional development: an empirical analysis based on panel data

The relevance of this study is due to the need for a systematic analysis of the impact of the digital economy on the sustainable and balanced development of China. It is especially important to understand whether digital transformation can become a tool for "catching up" for less developed regions, which is crucial for achieving the goals of the national strategy to reduce inequality and ensure stability. The results obtained can be used to adjust regional and innovation policies aimed at accelerating digital transformation and strengthening economic sustainability.

The purpose of the study is a comprehensive analysis of the role of the digital economy in overcoming economic difficulties and stimulating coordinated regional development in the People's Republic of China at the present stage. In the context of slowing overall economic growth, declining external demand, and technological dependence on developed countries, digital transformation is seen as a key factor in sustainable development.

Objectives: to identify internal and external problems hindering China's economic growth; to analyze the potential of the digital economy; to compare the effects of the digital economy in the eastern, central and western regions of the country.

Methodology. The research methodology is based on an empirical analysis of panel data for 31 provinces of China. A modified Cobb–Douglas production function was used, supplemented by the digital economy index, within the framework of the Fixed Effects model. The data was processed using the SPSS and STATA software packages, including stability tests.

The results showed a statistically significant positive correlation between the development of the digital economy and GDP growth.

Conclusions. The digital economy acts not only as a powerful driver of economic growth, but also as a tool to reduce inter-regional disparities. It demonstrates particularly high potential in less developed regions, where it promotes inclusive growth and the overcoming of infrastructural barriers. It is recommended to strengthen government support for digital infrastructure, develop human resources and create a supportive institutional environment to accelerate digital transformation.

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