The Impact of the Internet on Industrial Green Productivity: Evidence from China

Abstract

The expansion of the Internet has played a considerable role in improving industrial green development. This paper both analyzes how the development of the Internet affects Industrial Green Total Factor Productivity (IGTFP) and its mechanism of action, and, using the Dynamic Spatial Durbin Model (DSDM) and Chinese panel data, empirically investigates the impact and spatial spillover effect of the development of the Internet on IGTFP. The results show not only that the development of the Internet has a significant promoting effect on improvements to IGTFP in this region and the surrounding areas, but also that the long-term effect is greater than the short-term effect. The Mechanism test shows that Internet development can promote IGTFP through both the upgrading of industrial structure and technological innovation, with the intermediary effect of technological innovation obviously greater than that of industrial structure upgrading. The above research conclusions are still valid after performing a series of robustness tests, and provide empirical evidence for the implementation of the “Internet+” action plan and the popularization and application of the industrial Internet in China.