Analysis of the Development Patterns and Improvement Strategies of China’s Digital Economy—Drawing Insights from Data Collected across 227 Cities in China

Abstract

The digital economy serves as a pivotal engine for both sustainable and high-quality urban development. However, the progress of this economy manifests a heterogeneous pattern when observed in various cities. Employing a hybrid approach combining QCA and NCA methods, this study delves into the configuration pathways that lead to high digital economic development in 227 Chinese cities at prefecture level and above. It further explores the heterogeneity characteristics and potential improvement strategies for digital economic development in each city. The findings reveal that the high-level development of the digital economy is a balanced outcome stemming from three pivotal factors: technology, organization, and the environment. Specifically, technological innovation, fiscal investment, and economic growth have consistently exhibited robust propelling effects throughout the development of the digital economy in different cities, regardless of their scale or economic standing. Notably, there are substantial disparities in the development trajectories of the digital economy among cities of varying sizes. For instance, in super and mega cities, technological innovation and industrial restructuring are the fundamental drivers of regional digital economic growth. On the other hand, for second-tier large cities, policy support, economic strengths, and fiscal investment are more pivotal in fostering the progress of the urban digital economy. These insights offer a deeper understanding of the mechanisms underlying the heterogeneity in digital economic development across Chinese cities, thus providing tailored theoretical guidance for cities at different development levels to enhance their digital economy.