PUBLICATIONS & REPORTS

PUBLICATIONS & REPORTS

Does Regional Digital Transformation Improve Regional and Individual Well-Being? Evidence from Pilot Policies in China

Author KOMATSU Sho
Affiliation Asian Growth Research Institute
Date of Publication 2025.3
No. 2024-11
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Contents Introduction

Well-being is considered an important value in people's lives and an indicator of social progress. In recent years, as Internet use has become more widespread, research on the relationship between ICT and well-being has become essential. Under these circumstances, digital transformation (DX), defined as the changes brought about or influenced by digital technology in all aspects of human life, has attracted national and international attention. However, few studies have quantitatively examined whether DX improves well-being. To fill this gap in the literature, this study uses DX-related pilot policies as a quasi-natural experiment to investigate the effects of DX on well-being. The DX-related pilot policies examined in this study include the Rural E-commerce Comprehensive Demonstration Counties (REDC) policy and the 15-Minute Convenient Living Circles policy. Chapter 1 finds that the REDC policy has a significant positive impact on the quality of life (QOL) of rural residents. Moreover, mechanism tests highlight the crucial roles of increased absolute material welfare, reduced urban-rural income inequality, and improved human capital in enhancing rural residents' QOL. Chapter 2 finds that the REDC policy has a significant positive impact on the subjective well-being (SWB) of Chinese residents. Additionally, mechanism tests reveal that the positive effect of rural e-commerce on SWB can be explained by enhanced absolute welfare, measured by total income, and greater social capital accumulation, measured by total expenditures on gifts for social relations. Chapter 3 finds that the 15-Minute Convenient Living Circles pilot policy has a significant positive impact on the QOL of residents in China. An important policy recommendation arising from these findings is to continue and expand both the REDC policy and the 15-Minute Convenient Living Circles pilot policy to further improve the well-being of Chinese residents.