Rural revitalization driven by digital infrastructure: Mechanisms and empirical verification

Abstract

Rural revitalization is a critical concern for the country's long-term sustainable development and modernization efforts. The advent of digital infrastructure and its development have infused new energy into rural revitalization initiatives. This study leverages panel data from 283 cities over the period from 2008 to 2021, aiming to explore the impact of digital infrastructure on rural revitalization and to understand the underlying mechanisms of this relationship. The findings robustly suggest that digital infrastructure significantly fosters rural revitalization efforts. This conclusion holds firm even after addressing issues related to endogeneity. Mechanism analysis reveals that digital infrastructure enhances rural revitalization through several avenues, including the advancement of digital government initiatives, the development of digital finance, and the accumulation of digital talents. Furthermore, heterogeneity analysis indicates that the positive impact of digital infrastructure on rural revitalization is more pronounced in non-first-tier cities and those with a smaller agricultural labor force. Interestingly, the effectiveness of digital infrastructure in fostering rural revitalization does not vary with the degree of regional marketization. These findings have important policy implications for the government to popularize the construction of rural digital infrastructure, fully tap the potential of digital technology in rural revitalization, and accelerate the promotion of rural revitalization.