The Mechanism of Data Elements Application Empowering Urban–Rural Integrated Development

Efficient and unimpeded factor allocation constitutes the cornerstone of urban–rural integrated development. Using panel data from 281 prefecture-level cities in China spanning the period from 2011 to 2023, this study employs a two-way fixed-effects model to empirically investigate the direct effects and transmission channels of the application of data elements on urban–rural integrated development. The findings are as follows: (1) The application of data elements significantly promotes urban–rural integrated development. On average, a 1% increase in the level of data element application is associated with a 0.089% rise in the urban–rural integrated development index. This result remains robust across a battery of robustness tests, with pronounced regional heterogeneity. (2) Mechanism analysis demonstrates that data elements application drives urban–rural integrated development through three primary channels: facilitating labor mobility, mitigating capital misallocation, and elevating total factor productivity (TFP). (3) Heterogeneity analysis based on regional characteristics reveals that this promoting effect is more significant in regions with superior economic growth, more advanced industrial structures, and abundant human capital. (4) Spatial spillover analysis indicates that while data element application facilitates local urban–rural integrated development, it simultaneously exerts a negative spatial spillover effect on neighboring regions. Accordingly, policymakers should prioritize strengthening digital infrastructure in less developed regions and take the lead in establishing cross-jurisdictional data sharing platforms coupled with benefit compensation mechanisms, thereby fostering coordinated advancement and mutually beneficial outcomes in urban–rural integrated development across regions.