Research On The Impact Of Digital Economy Development On Relative Poverty In Western China Under The Goal Of Common Prosperity

After China has completely lifted itself from absolute poverty and fully built a moderately prosperous society,preventing the impoverished population from returning to poverty,improving relative poverty,and reducing the wealth gap between urban and rural areas,regions,and industries are important measures to enhance residents’ sense of happiness.At present,China has entered the era of digital economy,which is constantly changing people’s production and lifestyle as well as poverty management methods.The digital economy has played an important role in poverty alleviation strategies,and the development of digital industrialization has built a platform for the digitization of agriculture in impoverished areas.Through e-commerce and logistics,characteristic agricultural products can be sold across regions,increasing the income of residents in impoverished areas;The digital economy industry can promote the optimization of enterprise production efficiency,create job opportunities,and attract employment from impoverished areas.However,with the rapid development of the digital economy,the development level of the digital economy,the relative poverty situation and the improvement effect of the digital economy on the relative poverty in various regions are also gradually differentiated.Therefore,this paper explores the impact of the development of the digital economy in the western region on the relative poverty,with a view to providing intellectual support for promoting the economic development of the western region,alleviating the relative poverty of residents,and achieving common prosperity.This paper combs the domestic and foreign literature and clarifies the concepts of common prosperity,digital economy and relative poverty.First,it uses the vicious circle theory of poverty,ability poverty theory,right poverty theory and information asymmetry theory to analyze the mechanism of digital economy development affecting relative poverty in the western region from the theoretical level.Secondly,the entropy method is used to measure the development level of the digital economy from the four dimensions of digital infrastructure,digital applications,digital industry development and digital finance development.The A-F model is used to describe the multidimensional relative poverty in the west from the dimensions of income,health,education,work and living standards.Finally,the Ordered Probit regression and the mesomeric effect based on KHB are used to conduct empirical research.The main research conclusions are as follows:firstly,the level of digital economy development in the western region has been increasing year by year,and the relative incidence and degree of poverty among households have gradually decreased.Secondly,the development of the digital economy can significantly alleviate the occurrence of relative poverty in the western region.As the level of the digital economy improves,the probability of households not being in relative poverty will increase,while the probability of being in moderate and deep relative poverty will decrease.The household registration of residents in the western region is non agricultural,with a high level of education and better health status for the head of household.The head of household is not unemployed,the family size is small,the average health level of family members is good,the average length of education for family members is higher,and families with relatively small children are less likely to fall into relative poverty.Thirdly,the development of the digital economy can alleviate relative poverty in the western region through three mechanisms: inclusive digital finance,expanding information channels,and creating employment and entrepreneurship opportunities.However,social integration and technology empowerment mechanisms have not yet played a significant role.Fourthly,the development of the digital economy will have a greater impact on alleviating relative poverty in rural areas in the western region than in urban areas.Sichuan and Shaanxi,which have a better level of digital economy development in the western region,and Gansu,which has a deeper level of relative poverty,have a more significant effect on alleviating relative poverty through the development of the digital economy.According to the research conclusions,this paper believes that under the goal of common prosperity,in order to improve the quality and growth of digital economy development and reduce relative poverty,the western region can improve residents’ sense of well-being from: 1.Improve regional digital economy development policies,and focus on the development of western characteristic industries.2.Promote digital technology innovation and create employment and entrepreneurial opportunities.3.Improve the development system of digital finance and enhance the level of digital inclusive digital finance.4.Promote the pace of digital rural construction and enhance the level of digital infrastructure construction.5.Strengthen the sharing and openness of data resources,and build and improve an interconnected data ecosystem.