The convergence level and influencing factors of China’s digital economy and real economy based on grey model and PLS- SEM

Abstract

The paper constructs a research model mainly based on the Deng’s correlation analysis model on the convergence level measurement, the GM (1,1) coordinated development prediction model and PLS-Structural Equation Model (PLS-SEM) analysis model on the influencing factors. The data about China’s digital economy and real economy from 2005 to 2019 (totaled 2,250) is adopted to conduct an empirical analysis of the convergence level from 2005 to 2019 and predict the development trend from 2020 to 2029. The paper could further analyze the influencing factors of convergence, in an attempt to put forward relevant development suggestions. We hope the study could provide an objective reference and theoretical basis for improving the convergence level in China in some extent.