Spatial spillover effects of the digital economy on the green total factor productivity of China’s manufacturing industry

Abstract

The rapid expansion of the digital economy has garnered significant attention because of its potential to drive high-quality advancement in traditional sectors, particularly manufacturing. This study examines the spatial dynamics and potential spatial disparities between the digital economy and green total factor productivity (GTFP) in China’s manufacturing sector. We utilize a novel set of indicators to assess the advancement of the digital economy during Chinese provinces and apply spatial econometric models to investigate its spatial influence on GTFP. The main research content and conclusions of this study are as follows. (1) By employing a novel index system to quantify the digital economy’s advancement level within the manufacturing sector across various provinces in China, and utilizing it as the primary explanatory variable, the index system demonstrates significant efficacy in empirical analysis and is both scientifically robust and methodologically sound. (2) Using the spatial Dubin model, this study analyzes the spatial effects of the digital economy on the GTFP of the manufacturing sector and finds that it has a dominant positive spatial spillover effect on the GTFP of the manufacturing industry nationwide. (3) The results show that the effects of digital economy advancement on GTFP in the manufacturing industry have a positive spatial spillover effect in the eastern and central area, whereas it is negative in the western area. This study extends the applicability of the new economic geography and imperfect competition theories to the digital economy era, thereby contributing to these academic fields. Moreover, it introduces a novel analytical framework for assessing the digital economy’s influence on manufacturing advancement. The findings provide valuable insights and policy recommendations for fostering the development of the digital economy advancement across diverse regions in China.