Effects of digital entrepreneurial activity on GTFP in Chinese cities

Abstract

GreenTotal Factor Productivity (GTFP) is a critical indicator for measuring the green development and transformation of the economy, with profound implications for achieving energy conservation and developing the economy. In the context of the digital economy, digital entrepreneurship, as one of the important channels for digital industrialization, will have an effect on the promotion of GTFP. This study combines panel data from 219 Chinese cities at the prefectural level and above from 2007 to 2020 to examine the effect of digital entrepreneurship activities on GTFP. The empirical results show that digital entrepreneurial activity significantly reduces both GTFP and energy efficiency. Meanwhile, the effect of digital entrepreneurship activity on GTFP through industrial structure upgrading is not significant. Furthermore, a substantial negative correlation is identified between GTFP and digital entrepreneurship activity in the digital manufacturing industry, and in the eastern and central region.