The Digital Economy and Real Economy: The Dynamic Interaction Effect and the Coupling Coordination Degree

Abstract

This article aims to analyze the interplay between the digital economy (DE) and the real economy (RE), examining how they impact each other in terms of empowerment and supply effects. The study object is China from 2011 to 2021. This study applies the panel vector autoregressive model (PVAR). The study’s findings underscore a delayed empowerment effect within the DE. While DE growth has the potential to substantially enhance the future overall expansion of the tangible economy, it might concurrently dampen the short-term structural balance of the latter. However, the supply effect in the RE mode exhibits a similar delay. The time-lagged factors relating to the tangible economy’s total growth and structural fine-tuning play a pivotal role in fostering the progress of DE. Self-enhancement mechanisms significantly influence the overall growth of the tangible economy. However, this mechanism does not have the same significance in regard to enhancing structural coordination. Although the tangible economy’s expansion can catalyze structural refinement, the inverse relationship—where structural enhancement profoundly fuels tangible economic growth—does not hold true to a substantial extent. By assessing the overall degree of coupling and coordination between the DE and the tangible economy, it becomes apparent that these two domains are not tightly integrated. Instead, they exist in a fundamentally coordinated state, with a year-on-year upwards trend in their alignment, albeit at a modest pace. Furthermore, this coupling coordination degree displays a progressively diminishing trend from the southeastern coastal regions to the western interior, revealing a pronounced spatial imbalance. The contribution of this paper lies in its comprehensive enhancement of the theoretical framework and empirical research in the integration of energy and digital economy, addressing sustainable development, regional economic disparities, and practical policy implications to support future strategies for blending digital advancement with renewable energy utilization.