This article measures the development of digital economy of 29 provinces by using principal component analysis from 2004-2019.From the perspective of the circulation industry,the relationship between digital economy and the urban-rural income gap and its influential mechanism are empirically analyzed by fixed-effects model,mediating-effects model,and panel threshold model.The finding displays that the development of the digital economy has a significant positive impact on the urban-rural income gap.The digital economy can minish the urban-rural income gap by promoting the development of the circulation industry,and this positive role is more prominent with the development of the circulation industry.
digital economycirculation industryurban-rural income gap