Review Reports - An Analysis of the Impact of the Digital Economy on High-Quality Economic Development in China—A Study Based on the Effects of Supply and Demand

Round 1

Reviewer 1 Report

In order to improve the quality of this work, some comments have been given as below.

1.Regarding the issue of "The impact of Digital Economy on High-Quality Economic Development in China", it's not new. Please idenitfy the major difference between this work and published ones listed as below.

[1]Zhang W, Zhao S, Wan X, Yao Y (2021) Study on the effect of digital economy on high-quality economic development in China. PLoS ONE 16(9): e0257365. https://doi.org/10.1371/journal.pone.0257365

[2]Ding, C.; Liu, C.; Zheng, C.; Li, F. Digital Economy, Technological Innovation and High-Quality Economic Development: Based on Spatial Effect and Mediation Effect. Sustainability 2022, 14, 216. https://doi.org/10.3390/su14010216

2. Since this issue is not new, please highlight the reason why authors have to do this study, and enhance the motivation in introduction section. In addition, the motivation should be supported by academic evidences.

3.In introduction, please define "Malthusian trap". And authors should provide some related works of possible solutions of this kind of trap. Why did authors claim that "digital economy" can solve this trap?

4.Please clarify the solved problem in this study.

5.In section 2, authors should mention about the effects of digital economy on "High-Quality Economic Development in China", not only mentioned them individually, since some works have discussed this issue.

6.In tables 1~2, authors should provide some academic evidences to support why authors select these index?

7.Authors only used linear regression to analyze the collected data. Authors should prove the collected satisfy the basic assumptions of linear regression. In addition, it's too simple for a strict journal paper. Authors should employed advanced analysis techniques. Other feature selection techniques such as LASSO, SVM-RFE should be included.

8.Any unique finding has been discovered in this study? Please highlight them in conclusion.

Author Response

Dear Reviewer:

Thank you for you decision and constructive comments on our manuscript. We have carefully considered the suggestion of review and make some changes. We have tried our best to improve and made some changes in the manuscript “An Analysis of the Impact of the Digital Economy on the High-Quality Economic Development in China—A study based on the effects of supply and demand” (Manuscript No:2033947). The yellow part that has been revised according to your comments.

Point 1: Regarding the issue of "The impact of Digital Economy on High-Quality Economic Development in China", it's not new. Please idenitfy the major difference between this work and published ones listed as below.

[1]Zhang W, Zhao S, Wan X, Yao Y (2021) Study on the effect of digital economy on high-quality economic development in China. PLoS ONE 16(9): e0257365.

https://doi.org/10.1371/journal.pone.0257365

Response 1: Digital economy can not only directly achieve high-quality economic development, but also achieve high-quality economic development through the indirect effect of technological progress in improving total factor productivity. The second part of the study believes that the digital economy can directly achieve high-quality economic development, and can achieve high-quality economic development from the indirect effect of technological innovation.

First of all, the research results of this paper agree with the research of the above two documents. However, the examination of this paper is a further study of these two documents, based on Nax's "Vicious Circle of Poverty" theory, and the analysis is based on both supply and demand.

Secondly, the construction of the digital economy is based on the Statistical Classification of Core Industries of Digital Economy (2021) issued by the National Bureau of Statistics of China, which proposes that the digital economy should be divided into two categories: digital industrialisation and industrial digitalisation, which is more in line with the current development environment of the digital economy in China.

Finally, this study thinks that the digital economy can be an essential means to break through the Malthus trap, narrow the differences in economic development among countries, and provide theoretical support.

Point 2: Since this issue is not new, please highlight the reason why authors have to do this study and enhance the motivation in introduction section. In addition, the motivation should be supported by academic evidences.

Response 2: As suggested by the reviewer we have rewritten it according to the Reviewer’s suggestion. We strengthen the demonstration of research motivation, which is mainly discussed in the article Introduction, all of the second paragraph and the third paragraph line 1-27 (page2-3).

The research motivation is mainly: Since the financial crisis, there have been many crises in the global economy, such as COVID-19, war and extreme weather. Countries are faced with the crisis of falling into “Malthus trap” again, and the best way to break the crisis at present is to promote a new round of technological progress. At present, with the rapid development of digital economy, the proportion of digital economy in economic development is increasing, and digital economy is regarded as a new round of technological revolution. Whether digital economy can break through “Malthus trap”, break vicious circle and promote high-quality economic development needs to be deeply studied.

Point 3: In the introduction, please define the "Malthusian trap". And authors should provide some related works on possible solutions to this kind of trap. Why did the authors claim that the "digital economy" can solve this trap?

Response 3: We agree with the reviewer that we add a relevant description of the definition of the “Malthus trap” in paragraph 1 of the Introduction, lines 5 to 11 (pages 1). Add relevant Discussion on means of breaking through the “Malthusian Trap” in paragraph 2 of the Introduction, lines 14 to 18 (page 2).

As mentioned in the introduction, the current economic environment is complex and changeable. When the economies of various countries face the “Malthusian trap”, they are restricted by the limitation of factors of production and the difficulty of the rapid decrease of population. It is feasible to break through the “Malthusian trap” through the means of technological progress (for example, the industrial revolution, information revolution). At present, the digital economy is considered to be the first round of technological progress. Therefore, we believe it is effective to break the “Malthusian trap” and realise high-quality economic development.

Point 4: Please clarify the solved problem in this study.

Response 4: We think this is an excellent suggestion. We have rewritten it according to the Reviewer’s suggestion. The specific content in the Introduction, paragraph 3, lines 28-31 (page3)

Point 5: In section 2, authors should mention about the effects of digital economy on "High-Quality Economic Development in China", not only mentioned them individually, since some works have discussed this issue.

Response 5: In sections 2.1 and 2.2, we supplemented the relevant explanations of the impact of digital economy on high-quality economic development from different perspectives. As follows: Part 2.1: paragraph1, lines 14-17; paragraph 2, lines 20-23; paragraph 3, lines 27-31 (page 5-6) .

Part 2.2: paragraph1, lines 25-28; paragraph 2, lines 13-19 (page 6-7).

Point 6: In tables 1~2, authors should provide some academic evidences to support why authors select these index?

Response 6: As suggested by the reviewer, we added reference files for the selected indicators in Table 1 and Table 2 Reference ( page7-9).

Point 7: Authors only used linear regression to analyze the collected data. Authors should prove the collected satisfy the basic assumptions of linear regression. In addition, it's too simple for a strict journal paper. Authors should employed advanced analysis techniques. Other feature selection techniques such as LASSO, SVM-RFE should be included.

Response 7: Existing research on the Internet, electricity economy, and digital financial [1-3] related research think its a linear relationship between the digital economy, and the Internet electricity economy; the digital economy is considered an important part of the digital economy, so to a certain extent we can think that digital economy and high-quality economic development into a linear relationship.

[1] Hui, Ning; Chen, Jinqiang. Can the Integration of the Internet and Real Economy Become a New Momentum to Promote High-Quality Development. Journal of Northwest University ( Philosophy and Social Sciences Edition),2020,50(05):47-61.

DOI:10.16152/j.cnki.xdxbsk.2020-05-007.

[2] Dong,Jian,Tang Runhua, Zheng Yanyun .Discussion on the economic contribution effect of e-commerce under the perspective of high-quality development[J].Journal of Commercial Economics,2019(19):85-88.

http://gfffgd64d76043426484fsoxkqkwow9f9p6u6q.fgfy.hlju.cwkeji.cn/knavi/journals/SYJJ/detail

[3] Zhao, Li.Digital inclusive finance, innovation-driven development and high-quality economic development[J].Statistics & Decision,2022,38(15):104-107.DOI:10.13546/j.cnki.tjyjc.2022.15.019.

We have carefully considered the suggestion of reviewer

The data sample used in this study was large, and more data were classified, making it difficult to analyze using the LASSO, SVM-RFE model. Although there are some shortcomings in linear regression, fixed effects analysis using panel data can alleviate the estimation bias caused by missing variables that do not change over time. The analysis by instrumental variables can remove the endogenous estimation bias caused by missing variables. In this regard, we can believe in the results of the regression analysis made by the fixed-effect model.

Point 8: Any unique finding has been discovered in this study? Please highlight them in conclusion.

Response 8: As suggested by the reviewer, we have rewritten this part to the reviewer’s suggestion. In Conclusion and Suggestions paragraph 1, lines 5 to 26 (pages 17-18).

We tried our best to improve the manuscript and made some changes to the manuscript. These changes will not influence the content and framework of the paper. We choose MDPI English Editorial Department to try our best to modify the language of the article. And we did not list the change. We appreciate Reviewer’s warm work earnestly and hope the correction will be approved. Once again, thank you very much for your comments and suggestions.

Best Regards

Yours Sincerely,

Jianing Pang, Fangyi Jiao, Yimeng Zhang

Author Response File: Author Response.docx

Reviewer 2 Report

The paper request to be strengthened in its theoretical and practical assessment. Authors need to align their arguments and findings with theoretical arguments. The introduction can benefit from being restructured a little bit as well as the abstract by emphasizing the aspects of originality for this inquiry and the methods as well.

I recommend that the authors provide data sets and analysis patterns to validate the results. Also, make it more clear in the manuscript by answering the following questions; how the data was collected? how you can justify that the collected data is correct and truly represented your selected population? what methods were used for data collection? why only these particular analyses are sufficient to represent the results?

The discussion and implications sections need improvements. First, regarding the theoretical implications, I miss how the paper advances our understanding of the underlying theories (which need to be added). I think you can make a more sophisticated point on the theoretical contributions this study aims to make. You need to elaborate more on this and compare your findings and thus contributions in light of current research. The implications are superficial, and I suggest developing clear suggestions for the industry. Authors need to discuss their specific contribution to existing knowledge in depth to improve the paper. You have mentioned the theoretical contributions and managerial implications.

Author Response

Dear Reviewer:

Point 1: The paper request to be strengthened in its theoretical and practical assessment. Authors need to align their arguments and findings with theoretical arguments. The introduction can benefit from being restructured a little bit as well as the abstract by emphasizing the aspects of originality for this inquiry and the methods as well.

Response 1: We think this is an excellent suggestion. In the abstract and introduction, we added the description of the theory of "Vicious Circle of Poverty" by Nax, and emphasized the theoretical innovation of the paper. Specific modifications are made in the Abstract section, on lines 12 to 14, or the left side encoding 22 to 24 (page 1), and in the 1. Introduction paragraph 3, on lines 28 to 31, or the left side encoding 98 to 101 (page 4).

Point 2: I recommend that the authors provide data sets and analysis patterns to validate the results. Also, make it more clear in the manuscript by answering the following questions; how the data was collected? how you can justify that the collected data is correct and truly represented your selected population? what methods were used for data collection? why only these particular analyses are sufficient to represent the results?

Response 2: First of all, the data used in this research are mainly published by China National Bureau of Statistics, Beijing National Economic Research Institute and Beijing Forecaster Information Technology Co., Ltd., and the specific access websites and sources are explained in detail in 3.4.2 Data Sources and Descriptive Statistics section, or the left side encoding 433 to 439 (page 12).

Secondly, the data we use are the direct data of 31 provinces and cities in China published by the above-mentioned institutions, and the sources of such data have certain authority, authenticity and objectivity, and are widely used by scholars who study China's economic problems.

Third, the data acquisition is mainly collected by open database.

Fourthly, We added reference files for the selected indicators, in Table1 and Table 2 Reference ( page7-9).

Finally, we will upload the untreated raw data.

Point 3: The discussion and implications sections need improvements. First, regarding the theoretical implications, I miss how the paper advances our understanding of the underlying theories (which need to be added). I think you can make a more sophisticated point on the theoretical contributions this study aims to make. You need to elaborate more on this and compare your findings and thus contributions in light of current research. The implications are superficial, and I suggest developing clear suggestions for the industry. Authors need to discuss their specific contribution to existing knowledge in depth to improve the paper. You have mentioned the theoretical contributions and managerial implications.

Response 3: First of all, according to your suggestion, we will reorganise the research contribution, refine the research contribution, and increase the theoretical contribution. The specific revision position is in the last paragraph of the Introduction, or the left side encoding 119 to 139 (page 3) .

Secondly, we add the theoretical model is elaborated in the second part, and how the digital economy theoretically affects high-quality economic development, in the 2. Analysis of the Mechanism paragraph 1 and 2, on lines 12 to 16 , or the left side encoding 152 to 179 (page4).

Finally, in the Conclusion part of the article, the influence of the digital economy on various industries is added. Because the industry system is complex, we elaborate on it from agriculture, industry and tertiary industry perspectives. The specific revision position is in paragraph 3 of 5.Conclusions and suggestions on lines 5 to 19 ,or the left side encoding 676 to 690 (page 20).

We tried our best to improve the manuscript and made some change to the manuscript. These changes will not influence the content and framework of the paper. We choose MDPI English Editorial Department to try our best to modify the language of the article. And we did not list the change. We appreciate for Reviewer’s warm work earnestly, and hope the correction will meet with approval. Once again, thank you very much for your comments and suggestions.

Best Regards

Yours Sincerely,

Jianing Pang, Fangyi Jiao, Yimeng Zhang

Author Response File: Author Response.docx

Reviewer 3 Report

The paper offers insights on the effects of supply and demand in the digital economy on the economic development in the most populated country in the world—China. The paper is decently written and designed. Nonetheless, the paper could be improved in a number of ways, as I will explain below.

The focus of China needs to be strengthened. My view is to make the case that China is the most populous country in the world with many Chinese migrating in diasporic ways and thus having a truly global footprint in the world. Taken collectively Chinese inside and outside China constitute a significant % of the world’ population. The present study focuses on China only due to data availability and the economic focus of the study. Indeed, China studies are proliferating from the digital economy (electronic commerce) standpoint too (as seen in 20 years of electronic commerce research in ECR). Such unique and trending peculiarities should be acknowledged and discussed in my view.

The crises mentioned regarding COVID-19 (e.g., History, lessons, and ways forward from the COVID-19 pandemic), war (see What is at stake in a war? A prospective evaluation of the Ukraine and Russia conflict for business and society), climate change (e.g., The sustainability pyramid: A hierarchical approach to greater sustainability and the United Nations Sustainable Development Goals with implications for marketing theory, practice, and public policy), etc need to be supported with recent references (e.g., 2021 and 2022).

Recent studies on the digital economy, most notably the sharing economy, should be reviewed and discussed more prominently. For example, what are the prevalent definitions (e.g., The sharing economy: A marketing perspective) and trends (see Ushering a new era of Global Business and Organizational Excellence: Taking a leaf out of recent trends in the new normal), and what are its foundations for consumption and production (e.g., Foundations of consumption and production in the sharing economy). These are important points that will inform the present’s study focus on supply and demand.

Finally, in the conclusion, some implications need to be discussed. In particular, some advice on how to engage in the digital economy (e.g., digital transformation and business model innovation—see Digital transformation and business model innovation: Advances, challenges and opportunities) and suggestions should be provided, for example, in managing the dark side of digitalization (e.g., Managing the dark side of digitalization in the future of work: A fuzzy TISM approach), which should be considered in future research.

I hope that these comments will be thoroughly considered and will prove useful to improve and refine the quality of the paper.

Good luck and all the very best!

Author Response

Dear Reviewer:

Point 1: The focus of China needs to be strengthened. My view is to make the case that China is the most populous country in the world with many Chinese migrating in diasporic ways and thus having a truly global footprint in the world. Taken collectively Chinese inside and outside China constitute a significant % of the world’population. The present study focuses on China only due to data availability and the economic focus of the study. Indeed, China studies are proliferating from the digital economy (electronic commerce) standpoint too (as seen in 20 years of electronic commerce research in ECR). Such unique and trending peculiarities should be acknowledged and discussed in my view.

Response 1: We sincerely appreciate the valuable comments. We have checked the literature carefully and added more reference on related research on E-commerce of Digital Economy in China into the introduction part in the revised manuscript. See 1.Introduction paragraph 4, line 7 to 9 (page 3, reference 41).

Point 2: The crises mentioned regarding COVID-19 (e.g., History, lessons, and ways forward from the COVID-19 pandemic), war (see What is at stake in a war? A prospective evaluation of the Ukraine and Russia conflict for business and society), climate change (e.g., The sustainability pyramid: A hierarchical approach to greater sustainability and the United Nations Sustainable Development Goals with implications for marketing theory, practice, and public policy), etc need to be supported with recent references (e.g., 2021 and 2022).

Response 2: As suggested by the reviewer, we have added more references to support this idea. See 1. Introduction paragraph 2, line 3 to 14 ( page 3, reference 11-18).

Point 3: Recent studies on the digital economy, most notably the sharing economy, should be reviewed and discussed more prominently. For example, what are the prevalent definitions (e.g., The sharing economy: A marketing perspective) and trends (see Ushering a new era of Global Business and Organizational Excellence: Taking a leaf out of recent trends in the new normal), and what are its foundations for consumption and production (e.g., Foundations of consumption and production in the sharing economy). These are important points that will inform the present’s study focus on supply and demand.

Response 3: We agree with the reviewer that the relevant literature on sharing economy and business change trends should be appropriately added to the study of supply and demand relationship. Add specifically in paragraph 3 of Part 2.1, line 14 to 17 (page 6, reference 58), and paragraph 2 of Part 2.2, line 7 to 11 (page 7，reference 65-66).

Point 4: Finally, in the conclusion, some implications need to be discussed. In particular, some advice on how to engage in the digital economy (e.g., digital transformation and business model innovation—see Digital transformation and business model innovation: Advances, challenges and opportunities) and suggestions should be provided, for example, in managing the dark side of digitalization (e.g., Managing the dark side of digitalization in the future of work: A fuzzy TISM approach), which should be considered in future research.

Response 4: As suggested by the reviewer, we have added “Managing the dark side of digitalization in the future of work: A fuzzy TISM approach” the literature article is presented in Part 4.2.3 paragraph 2 , line7-10 (page15, reference 92). And another in Part 4.2.3 paragraph 4 , line7-8 (page16, reference 95)

Best Regards

Yours Sincerely,

Jianing Pang, Fangyi Jiao, Yimeng Zhang

Author Response File: Author Response.docx

Round 2

Reviewer 1 Report

All of my comments have been fully considered in the revised version. I think it could be accepted.

Author Response

Dear Reviewer:

Thanks for your suggestion. We revised the whole manuscript carefully to avoid language errors. In addition, we choose MDPI English Editorial Department consulted a professional editing service, and asked several colleagues who are native English speakers to check the English. We believe that the language is now acceptable for the review process. And we hope the revised manuscript could be acceptable to you.

Best Regards

Yours Sincerely,

Jianing Pang, Fangyi Jiao, Yimeng Zhang

Reviewer 2 Report

I appreciate the authors revised the manuscript very well.

However, as concerned as my previous comments, I did not find an attached file containing the data that was used for the analysis.

Furthermore, there is no need to add responses in Chinese that the reviewer may not be able to understand the other language. I am confused why you have mentioned the responses in Chinese.

Author Response

Dear Reviewer:

Thanks for your suggestion. First of all, we will upload the command to analyze the data using the Stata software.

Secondly, we revised the whole manuscript carefully to avoid language errors. In addition, we choose MDPI English Editorial Department consulted a professional editing service, and asked several colleagues who are native English speakers to check the English. We believe that the language is now acceptable for the review process. And we hope the revised manuscript could be acceptable to you.

Best Regards

Yours Sincerely,

Jianing Pang, Fangyi Jiao, Yimeng Zhang

Reviewer 3 Report

Thank you for revising the paper. I am happy to recommend acceptance. Congratulations!

Author Response

Dear Reviewer:

Best Regards

Yours Sincerely,

Jianing Pang, Fangyi Jiao, Yimeng Zhang