Abstract: The digital economy is of great significance in driving the restructuring of industrial systems andthe shifting paradigms, as well as building a unified market. Based on a heterogeneous enterprise model, this paper constructs an inter provincial sales model within a closed economy under the digital economy to explore the changes in production costs and the changes of the degree of regional administrative monopolies brought about by the development of the digital economy, as well as their impact on the excessive industrial homogenization. The spatial spillover effects of this impact is also analyzed. The theoretical hypothesis is empirically tested by using the measured data of the degree of industrial homogenization and the degree of digital economy development in 29 provinces from 2011 to 2020. The findings show that the development of the digital economy can effectively reduce the problem of excessive industrial homogenization. In the eastern region, the areas with higher levels of digital economy innovation and lower levels of marketization, the role of digital economy development in reducing industrial homogenization is more significant. The development of digital economy in the adjacent areas can reduce the degree of industrial homogenization in the local area. The development of the digital economy can reduce the degree of industrial homogenization by reducing production costs and the degree of regional administrative monopolies.

Key words: digital economy, industrial over-isomorphism, local administrative monopoly