Drag Effects of Urban-Rural Digital Divide on Urbanization: Evidence from China's Panel Data

The aim of this study is to gauge the drag of China's urban-rural digital divide (URDD) on urbanization. The study, drawing on Romer's thought concerning growth drag, employing the Cobb-Douglas production function and an urbanization equation, derives the drag equation of URDD's impact on urbanization. Using the co-integration methodology, unit root tests, and the panel data of provinces in China over the period from 2000 to 2009, this study documents an existence of drag and calculates its value of 6.38%, indicating that the velocity for China's urbanization declines 6.38% in the case of drag, relative to without the drag limitation. The study also finds that in the knowledge-based digital epoch, digital techniques and awareness need to be cultivated and enhanced for rural residents, specifically the digital qualifications, with an objective of accelerating the urbanization process and achieving an equilibrium development for urban-rural areas. The study concludes with limitations and fields for future research.