The Impact of Digital Economy and Industrial Structure on Green Total Factor Productivity in China

Session

Management, Business and Economics

Description

The digital economy is a new driving force and engine of industrial transformation and economic development to improve quality and efficiency. This paper focuses on the green value of the digital economy. Based onmeasuring urban green total factor productivity (GTFP) through the SBM model, using panel data of 281 prefectural-level cities in China from 2011- 2019, to examine the impact of the digital economy on GTFP and its underlying mechanisms in a multidimensional manner using high-dimensional fixed effects, mediating effects, threshold effects, and double-difference models. The study finds that the digital economy can directly promote GTFP and release GTFP dividends through the rationalization and advancement of industrial structure. This conclusion still holds after robustness tests such as selecting historical data as instrumental variables and "smart city" pilots as quasi-natural experiments. Further research finds that the digital economy can better promotes GTFP in declining, regenerative, and non-resource-based cities. Threshold regression results verify the nonlinear effect characteristics of the digital economy.

Keywords:

digital economy; industrial structure; green total factor productivity; smart city

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-550-50-5

Location

UBT Kampus, Lipjan

Start Date

29-10-2022 12:00 AM

End Date

30-10-2022 12:00 AM

DOI

10.33107/ubt-ic.2022.401

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The Impact of Digital Economy and Industrial Structure on Green Total Factor Productivity in China

UBT Kampus, Lipjan

The digital economy is a new driving force and engine of industrial transformation and economic development to improve quality and efficiency. This paper focuses on the green value of the digital economy. Based onmeasuring urban green total factor productivity (GTFP) through the SBM model, using panel data of 281 prefectural-level cities in China from 2011- 2019, to examine the impact of the digital economy on GTFP and its underlying mechanisms in a multidimensional manner using high-dimensional fixed effects, mediating effects, threshold effects, and double-difference models. The study finds that the digital economy can directly promote GTFP and release GTFP dividends through the rationalization and advancement of industrial structure. This conclusion still holds after robustness tests such as selecting historical data as instrumental variables and "smart city" pilots as quasi-natural experiments. Further research finds that the digital economy can better promotes GTFP in declining, regenerative, and non-resource-based cities. Threshold regression results verify the nonlinear effect characteristics of the digital economy.