Internet development, economic level, and port total factor productivity: an empirical study of Yangtze River ports

Abstract

ABSTRACT To improve inland ports efficiency, this paper uses the Hicks-Moorsteen index to measure the TFP of 18 inland ports on the Yangtze River from 2005 to 2016 and establishes a nonlinear measurement model of internet development affecting port TFP. The results show that the TFP level of Yangtze River ports shows a clear upward trend, mainly due to the obvious progress of production technology and the improvement of efficiency. The TFP of large-scale ports has significantly improved while the TFP of small and medium-sized ports has declined. The threshold effect of TFP was studied empirically, showing that in areas with high levels of economic development, the Internet improves port TFP. However, internet development in areas with lower economic levels has hindered the improvement of TFP. Based on port size, economic level, and internet development trends, this paper proposes relevant policy recommendations for improving the TFP of Yangtze River ports.