The Impact of COVID-19 Epidemic on the Development of the Digital Economy of China—Based on the Data of 31 Provinces in China

This study investigates the impact of coronavirus disease 2019 (COVID-19) on economic development of China by measuring the HP financial index as an alternative variable of the digital economy. This study shows that economy of China developed further with the dissemination of COVID-19. Furthermore, the digital economy increased the level of economic development more prominently at the onset of COVID-19 pandemic. Moreover, an analysis of regional heterogeneity reveals that the eastern region maintained economic stability through its digital economy during COVID-19, while the central region improved its digital economy during COVID-19 pandemic. Although the economically underdeveloped western region has not suffered too seriously from COVID-19 pandemic, considering the sustained impact of disease and the uncertainty of its transmission speed, the region should vigorously develop its digital economy to manage public risk.