Can rural areas in China be revitalized by digitization? A dual perspective on digital infrastructure and digital finance

Despite the growing recognition of the potential of digitization to transform rural areas, there is a paucity of research on its multi-faceted impact on rural revitalization in developing countries such as China. Thus, this study investigates the direct and mediating effects of digital infrastructure and digital finance on rural development in China by using a comprehensive dataset from 2003 to 2021. Based on the findings, both digital infrastructure and digital finance positively contribute to rural revitalization, with their impacts partially mediated by industrial upgrading and marketization, respectively. Meanwhile, the effectiveness of digitization varies across different contexts, underscoring the need for tailored strategies. The implication of the findings is that a holistic approach that integrates digital investments, financial inclusion, industrial upgrading, and marketization is crucial for harnessing the potential of digitization in bridging the urban-rural divide and fostering sustainable rural growth.