Impact mechanism and spatial spillover effect of the digital economy on the high-quality development of undertakings for the aged in China.

Background: Digitalization and population aging have had a profound impact on the development of undertakings for the aged, which brings challenges as well as opportunities for elder care system. This study examines the impact of the digital economy on the high-quality development (HQD) of undertakings for the aged in China.

Methods: Based on the panel data of 31 provinces in mainland China from 2013 to 2021, this study explores the influence mechanism of the HQD of undertakings for the aged driven by the digital economy and its spatial spillover effects. The benchmark regression model is used to investigate the impact of the development level of the digital economy on the HQD of undertakings for the aged. The mediation effect model is used to explore the indirect effects of the digital economy on the HQD of undertakings for the aged through the influence of the intermediary variable. The spatial panel model is then used to analyze the spatial spillover effect of the digital economy on the HQD of undertakings for the aged.

Results: The digital economy has a positive effect (coefficient = 0.1530, P-value < 0.01) on the local HQD of undertakings for the aged and a negative effect (coefficient = - 0.1012, P-value < 0.01) on the level of the HQD of undertakings for the aged in neighboring areas after controlling for other variables. The mediation effect of the proportion of the tertiary industry in GDP accounts for 6.6% of the total effect of the digital economy on the HQD of undertakings for the aged.

Conclusions: The digital economy can significantly promote the HQD of undertakings for the aged by transforming the development of the tertiary industry. The improvement in the digital economy has a significant spatial spillover effect. This research enriches the existing body of literature by suggesting effective ways to enhance the HQD of undertakings for the aged through the digital economy and the tertiary industry.