Digital village construction is an important integration point of the “Digital China” and “Rural Revitalization” strategies, and a crucial driving force for promoting the common prosperity of farmers and rural areas. This paper combines the county-level digital village index with the China Household Finance Survey (CHFS) data and examines the impact and mechanism of digital village construction on the common prosperity of farmers and rural areas.

The findings of this paper are as follows: First, digital village construction significantly promotes the common prosperity of farmers and rural areas. It has a significant positive impact on both wealth creation and inclusive sharing, but the effect of wealth creation is greater than that of inclusive sharing. Second, mechanism testing shows that digital village construction promotes the common prosperity of farmers and rural areas by affecting farmers’ household entrepreneurial behavior, social capital accumulation, and household financial asset allocation, thereby generating the “wealth creation effect” and “inclusive sharing effect”. Third, from the results of heterogeneity in individual farmer characteristics, the impact of digital village construction is greater on households with male heads and those without elderly members; from the results of regional economic heterogeneity, the impact of digital village construction is greater in eastern and central regions and areas with a higher level of industrial structure.

The contributions of this paper are as follows: First, it combines the CHFS micro data with the county-level macro data and constructs a comprehensive index system for measuring the common prosperity of farmers and rural areas, enriching the research on the measurement and evaluation of the common prosperity of farmers and rural areas. Second, it combines the county-level digital village index with the CHFS micro data and empirically assesses the impact of digital village construction on the common prosperity of farmers and rural areas, providing a data foundation and empirical evidence for evaluating the common prosperity effect of digital village construction. Third, it clarifies the mechanism of how digital village construction affects the common prosperity of farmers and rural areas from three aspects: affecting farmers’ household entrepreneurial behavior, expanding farmers’ social capital, and optimizing farmers’ household financial asset allocation.