Analysis of the Effect of Digital Economy on Total Factor Productivity of Manufacturing Firms

Abstract

The paper empirically evaluated the impact of the degree of metropolitan digital economy growth on the total factor output of businesses using panel data from manufacturing listed companies in Shanghai and Shenzhen A-shares from 2011 to 2019. It has been discovered that, first and foremost, urban digital economy growth can greatly improve business total factor output. After replacing the explanatory factors and central explanatory variables, the benchmark regression findings stay robust. Second, the impact mechanism test shows that metropolitan digital economy growth promotes company technological innovation, thereby increasing enterprise total factor output. Third, the sample is split into three samples in the eastern, central, and western regions, and the regressions are run independently in each. According to the analysis findings.