The role of internet development on green total-factor productivity—An empirical analysis based on 109 cities in Yangtze River economic belt

Abstract

As one of the most important economic regions in China, the improvement of green total-factor productivity (GTFP) in Yangtze River economic belt has vital significance for economic transformation in China. Using 109 cities’ panel data from 2004 to 2018, slacks-based global data envelopment analysis was first applied to construct GTFP. On the basis, dynamic GMM and mediation effect models were used to investigate the role of internet development on GTFP. The empirical results illustrated that GTFP lacked endogenous driving force. However, internet development not only has significant direct positive effect on GTFP, but also indirectly promotes GTFP through technology innovation and industrial structure upgrade. And the mediation variables also have two-way positive impacts on internet development. After accounting robustness test, the empirical conclusions were still valid. Based on the analysis, our study provided scientific and reasonable policies to improve GTFP in Yangtze River economic belt.