A Method for Measuring the Digital Economy

Abstract

Against the background of the integration of technological revolution and

industrial transformation, the digital economy has become a core driving

force for high-quality development, but it faces problems of ambiguous

definition and inconsistent measurement systems. This paper first sorts out

the definitions of the digital economy by international organizations and

academic circles, then defines its connotation and summarizes its four main characteristics. Subsequently, it constructs a measurement system based on two criteria (internet progress and digital finance) with four sub-

components, and uses the entropy method to calculate the digital economy

level of 258 prefecture-level cities in China from 2011 to 2022. The results

show an obvious unbalanced development: Eastern China has the highest

level, followed by Central China, and Western China is the weakest. Finally,

targeted suggestions are put forward for the three regions to promote the

coordinated development of the