With the continuous integration of Internet technology and various fields of economy and society, Internet economy has become a new economic form. However, there is no unified standard for measuring the development level of Internet economy in academi...
With the continuous integration of Internet technology and various fields of economy and society, Internet economy has become a new economic form. However, there is no unified standard for measuring the development level of Internet economy in academic fields. This paper establishes an evaluation index system for the development level of Internet economy, measures the development level of the internet economy in level of China, and analyzes the influence of the internet economy on China's economic growth.
In this paper, an evaluation index system for the development level of Internet economy was established using 4 indicators such as external innovation environment, network infrastructure capabilities, Internet application development level and the profitability level of related industries. In addition, this paper estimates the development level of the internet economy by region in China during 2014-2019 using the entropy method. Finally, an empirical analysis was conducted on the effect of the Internet economy development level on China's economic growth through the Cobb-Douglas production function model.
According to the analysis result, it was found that the external innovation environment and the profitability level of related industries have a great influence on the development level of China's Internet economy. The level of Internet economy development by region was highest in the eastern region, followed by the central region and then the western region. The annual growth rate was the highest in the western region, followed by the central region and the eastern region. According to the results of empirical analysis on the effect of the development level of the Internet economy on economic growth, both the whole of China and each region had a positive (+) effect and showed a high statistical significance level. In summary, China needs to upgrade the development level of the Internet economy by improving its Internet infrastructure and strengthening its technological innovation capabilities.