Abstract: Based on the provincial panel data of China from 2012 to 2021, the impact of the development of the digital economy on urban-rural integration and its mechanisms were examined by using fixed-effect models, mediating-effect models and threshold-effect models. The results showed that the development of the digital economy could significantly promote the process of urban - rural integration in China. Compared with regions with a high level of urban-rural integration, the development of the digital economy had a greater promoting effect in regions with a low level of urban-rural integration. This mechanism was realized through two channels: Labor transfer and enhancing regional development capabilities. Further exploration was conducted and it was revealed that the development of the digital economy presented non-linear characteristics in urban-rural integration. When the regional economic development level crossed two thresholds, the enabling effect of the digital economy on the development of urban-rural integration gradually slowed down. Therefore, local digital economy construction should be continuously improved, labor transfer should be rationally guided, the endogenous driving force of regional development should be strengthened, and differential policies should be implemented according to local conditions, so as to share the dividends of the digital economy and comprehensively promote the in-depth integration of urban and rural areas.

Key words: urban-rural integrated development, digital economy, labor transfer, regional development ability