Evaluation of Digital Economy Development in 31 Chinese Provinces and Cities

Cai Jing and Neszmélyi György Iván and Wei Ziji (2023) Evaluation of Digital Economy Development in 31 Chinese Provinces and Cities. In: Energy Crisis and Security Challenges in the World - Sustainable Responses of the Asian Economies and Societies. Budapesti Gazdasági Egyetem, Budapest, Magyarország, pp. 15-31. ISBN 978-615-6342-67-6

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Abstract

The development of the digital economy is a strategic choice to build a new pattern of China’s economic development and a necessary path to promote the high-quality development of China’s economy. In addition, the digital economy has become a new driving force for China’s economic growth and quality improvement. This paper constructs a comprehensive evaluation system for the digital economy (20 indicators in total) in four dimensions: digital infrastructure, digital industry revenue generation, digital service capacity, and digital innovation capacity. Based on regional sample data from 31 provinces and cities in China from 2014 to 2021, this paper uses an Entropy-based TOPSIS (Technique for Order of Preference by Similarity to Ideal Solution) method to examine and assess the overall level of China’s digital economy development, such as a weak industrial transformation, weak innovation capacity, lagging digital governance, an unbalanced internal structure of the digital economy, and unbalanced development within regions. The authors then make targeted recommendations based on specific issues. On the supply side, it is necessary to support infrastructure development, nurture market players, enhance innovation capabilities and strengthen the talent pool to form a strong support for the development of the digital economy. Meanwhile, on the demand side, a wide range of application scenarios and market areas should be built for the digital transformation of enterprises, residents, and government departments to form an effective driver for the development of the digital economy.