Higher Education, Digital Economy, and Common Prosperity

Abstract

Purpose This study examines the influence of higher education and the digital economy on common prosperity at the provincial, urban, and rural levels, as well as how the digital economy mediates the effect of higher education on common prosperity. Design/Approach/Methods Based on Chinese provincial panel data from 2011 to 2020, this study constructs a novel index to measure the common prosperity index at the provincial, urban, and rural levels that comprise the dimensions of “development” and “sharing.” The panel data method is used to accomplish the empirical studies. Findings First, increasing the proportion of higher education had a significant positive impact on common prosperity at the provincial, urban, and rural levels. Second, the development of the digital economy had a significant impact on common prosperity at the rural level only. Third, developing the digital economy strengthened the positive role of higher education in promoting common prosperity at the provincial and urban levels. Originality/Value The results indicate that expanding the scale of higher education and deepening the development of the digital economy are effective means of promoting common prosperity. Government can exert the positive moderating role of the digital economy in the beneficial effect of higher education on common prosperity.