An Empirical Analysis on Influencing Factors of Digital Economy

The rapid development of digital economy is bringing new driving force to the world economy. If China wants to seize the opportunity and catch the express train of digital economy, it must make clear about its influencing factors. Therefore, according to the data of China Statistical Yearbook from 2000 to 2019, this thesis makes a quantitative empirical analysis on the influencing factors of China's digital economy based on factor analysis, regression analysis and other research methods. The result of factor analysis shows: gross domestic product (GDP)(0.998), consumption level of all residents (HCL)(0.999), total investment in fixed assets of the whole society (CFAI)(0.969), elderly dependency ratio (OADR)(0.991), money supply (M2)(0.998), R&D expenditure(R&D)(0.999), and education appropriations (EA)(0.997) account for a great amount of contribution rate in component one, which means that these variables are the main influencing factors of digital economy, and have obvious positive effects on digital economy (The values in brackets are the component coefficients of corresponding variables). Urban registered unemployment rate (URUR)(0.779) and consumer price index (CPI)(0.752) account for a little big contribution rate in component 2, indicating that these two variables also positively promote the level of digital economy to a certain extent. The regression analysis results show that the sig values of constant, component one and component two variables are 0.00, 0.00 and 0.01 in turn, which has passed the significance test, indicating that the regression equation is meaningful. In other words, the development level of China's digital economy significantly depends on four main influencing factors, national economic strength, human capital, residents' income level and government intervention. In the end, according to the driving factors of digital economy, the thesis puts forward relevant policy suggestions to promote the development of China's digital economy.