The digital economy is the current development trend. Promoting the construction of a unified large market is a major strategic decision of the new era in our country, and the two must be organically unified. This study constructed a digital economy development index system via the entropy weight method and measured market integration using the market segmentation index. Leveraging 2011-2022 provincial panel data, it empirically examined the impact of digital economy development on market integration and its mechanism. Results indicate that the digital economy significantly advances market integration by enhancing circulation efficiency and deepening the specialized division of labor. This effect is more prominent in Central and Northwestern China than in Eastern China. Findings offer empirical evidence and policy insights for empowering market integration through the digital economy.

digital economy, market integration, market segmentation, mechanism of action