Research on the Impact of Digital Economy on Manufacturing Total Factor Productivity

Abstract

This paper empirically tests the impact mechanism of digital economy development on manufacturing total factor productivity, using data from Chinese manufacturing enterprises from 2011 to 2020, and based on the theoretical framework of the impact of digital economy development on manufacturing total factor productivity. The development of the digital economy has been found to have a significant positive impact on the total factor productivity of the manufacturing industry. The heterogeneity effect demonstrates that the digital economy in coastal areas has a significant effect on the improvement of manufacturing total factor productivity, with the eastern coastal area having the strongest effect; the digital economy in the Yellow River’s middle reaches, the Yangtze River’s middle reaches, and the southwest also having a significant effect, with the effect in the southwest region being more significant; and the digital economy in the northwest and northeast having no effect. Possible reasons include larger bottlenecks in the western region’s labor force structure, technology level, and management capabilities, which may lead to the inability of enterprises to effectively absorb the dividends of digital change and apply the scenarios, thus affecting the release of their productivity effects.

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“…This gap indicates a need for further exploration in this area. Second, while the digital economy is recognized as a new production factor with significant economic impact, most literature focuses on innovation, R&D, and traditional total factor productivity, without delving deeply into the green value behind the digital economy [9,10]. It is unclear whether the digital economy's influence on green total factor productivity is short-term or long-term [38].…”

“…The rise of the digital economy has provided new growth momentum and transformation opportunities for the manufacturing sector. Previous research has indicated that the digital economy's role in advancing manufacturing's green productivity mainly manifests in two areas [9,40].…”

“…In this transformative landscape, the digital economy promotes innovation, ensures equitable access to technological benefits, and aligns with various sustainable development goals by facilitating sustainable industrialization. It enhances energy efficiency, contributes to affordable clean energy, promotes inclusive economic development through decent work and economic growth, creates job opportunities, fosters sustainability and innovation in industry, innovation, and infrastructure, and crucially supports climate action by providing technology support for climate change mitigation [9,10].…”

Can the Digital Economy Enable Carbon Emission Reduction: Analysis of Mechanisms and China’s Experience

“…The digital economy, as a new form of economy, has attracted widespread attention from domestic and international experts and scholars. Prior to the implementation of the "dual carbon" targets by the country, the academic community primarily focused on studying the dividend effects of the digital economy, which are primarily reflected in its technological innovation efficiency, production efficiency, and high-quality development and employment [15]. With the successful establishment of strategic goals by the government to achieve a carbon peak by 2030 and carbon neutrality by 2060, experts and scholars have begun to explore the impact of the digital economy on carbon emissions levels [16][17][18].…”

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