Research on the Impact of Digital Economy on Total Factor Productivity in China

Abstract

This study applied the pooled regression to examine the linkage effects of digital economy on total factor productivity (TFP) in China based on the data including the provincial TFP calculated by dual method and the digital economy index proposed by principal component analysis in this paper. The results demonstrate that digital economy index has a nonlinear relationship with provincial TFP, and positively promotes the extensive and sustainable development of TFP. Nevertheless, there is a regional diversity that digital integration in eastern China accelerates the high-quality TFP growth, while they are relatively inferior in the central and western regions. The results provide valuable reference resources for the departments concerned to cross the regional barriers existing in technological information, launch the cooperative program and construct the decentralized infrastructure.