Intelligent Economy and Income Increase for Urban and Rural Residents: Mechanisms and Paths

Abstract

The new form of the intelligent economy, based on data, computing power, and algorithms, systematically reshapes all aspects of economic operation through human-machine collaboration, cross-border integration, and co-creation and sharing, profoundly changing the inherent logic of residents' income generation. This paper systematically examines the mechanisms and paths by which the intelligent economy affects the income growth of urban and rural residents from a theoretical perspective. The study found that the intelligent economy, through the elevation of the status of factors of production, the transformation of the form of the production function, and the reconstruction of distribution relations, has formed a whole new income determination mechanism. Due to the structural differences between urban and rural residents in terms of factor possession, infrastructure, human capital, etc., the income-increasing effect of the intelligent economy shows differentiated characteristics. A new type of value cycle is forming between urban and rural areas, and the income-increasing effects are transmitted to each other. To achieve inclusive income growth, systematic policy responses are needed at four levels: infrastructure integration, data revenue distribution, capacity building, and redistribution mechanisms.