Digital inclusion drives sustainable growth but inequalities persist

Access to information technology is transforming health and economic outcomes across China, but a new study warns that persistent digital inequalities continue to drive disparities between urban and rural communities.

A recent paper, “Information Technology, Urban–Rural Health Disparities and Pathways to Sustainable Development: Evidence from the 2023 Chinese General Social Survey,” published in Sustainability analyzes how digital tools influence income, health, and social equity. Based on responses from 5,332 participants in the 2023 Chinese General Social Survey (CGSS), the study provides rare, data-driven insights into the role of technology in promoting sustainable and inclusive development.

How digital access shapes income and health outcomes

The research presents compelling evidence that information technology (IT) delivers measurable benefits across income and health domains. For income, the analysis shows that each incremental increase in digital access correlates with a significant 28.6 percent boost in earnings. By enabling individuals to access broader job markets, enhance productivity, and engage with digital commerce platforms, IT reduces structural barriers that have long limited upward mobility, particularly in rural areas.

Health outcomes tell a similar story. Broader digital engagement translates into better physical and mental health, as residents gain access to online healthcare information, telemedicine services, and digital health platforms. These resources enable faster diagnoses, better disease management, and access to mental health support networks that were previously unavailable in remote regions.

However, the study reveals a nuanced picture: while digital tools improve income across both urban and rural areas, their impact on health is more pronounced in rural communities. This is largely because technology fills critical gaps in healthcare resources where traditional systems are scarce. Telehealth platforms and digital health literacy programs are particularly transformative in rural areas, helping residents navigate complex healthcare needs while reducing geographic and economic barriers to care.

The persistent urban–rural digital divide

Despite these benefits, the research uncovers persistent structural inequalities that shape how technology is adopted and leveraged. By employing regression models, interaction analyses, and Blinder–Oaxaca decomposition techniques, the study quantifies the contribution of IT to ongoing disparities.

IT accounts for 10.8 percent of income inequality between urban and rural populations. This figure reflects the uneven distribution of digital skills, access to devices, and broadband infrastructure, which limits rural residents’ ability to fully capitalize on digital economic opportunities.

The divide is even starker in health outcomes. According to the findings, IT contributes to 27.2 percent of the physical health gap and 41.7 percent of the mental health gap between urban and rural residents. This suggests that while rural populations experience greater health benefits from digital engagement, systemic barriers still prevent equitable access. Without targeted interventions, these gaps risk deepening as technology advances.

The study also highlights the mediating role of income in health improvements. Rising earnings help rural households afford better nutrition, preventive care, and access to healthcare services. Yet the analysis makes clear that income explains only part of the story, accounting for 8.47 percent of improvements in physical health and 12.44 percent in mental health. Direct benefits, such as improved health literacy and connectivity to digital health networks, remain the dominant pathway through which technology enhances well-being.

Policy directions for sustainable and inclusive development

The findings point to urgent policy priorities for ensuring that digital transformation supports sustainable and inclusive growth.

For the health sector, the study calls for expanded digital health infrastructure in rural areas. Investments in telemedicine platforms, mobile health services, and community-based digital health programs can help bridge the access gap. Improving digital literacy among rural populations will also ensure that residents can use available resources effectively and confidently.

In the economic domain, the emphasis is on skills and integration. Training programs aimed at building digital competencies, particularly for rural workers and small business owners, can help unlock the economic potential of digital platforms. Integrating rural enterprises into national e-commerce ecosystems can further amplify income gains while fostering sustainable growth.

The research also highlights the importance of policy differentiation. Urban areas, with higher baseline access and digital proficiency, may benefit most from advanced applications like artificial intelligence and big data analytics to optimize health and economic outcomes. In contrast, rural strategies should prioritize foundational access, affordability, and digital skill-building to close the existing gaps.

Policymakers are urged to design interventions that not only expand access but also ensure efficient utilization, thereby transforming digital access into tangible social and economic dividends.