Abstract:Based on panel data from 30 provinces (cities) in China from 2011 to 2020, this study empirically tests the impact mechanism and spatial spillover effect of the digital economy on the urban-rural income gap using time regional fixed effect model, mediation effect model, moderation effect model, and spatial Durbin model. The results indicate that the development of the digital economy will widen the income gap between urban and rural areas; The level of urbanization plays a mediating role in the relationship between the two; The level of informatization can regulate the relationship between the two; The digital economy has a spatial spillover effect on the income gap between urban and rural areas. Therefore, based on the conclusion, policy recommendations are proposed to narrow the urban-rural income gap, thereby promoting social equity and stability and achieving common prosperity.