Regional Total Factor Productivity Research Articles

The Influence of the Convergence of Digital and Green Technologies on Regional Total Factor Productivity: Evidence from 30 Provinces in China

This paper explores the development of digital and green collaboration, empirically examining both the linear and nonlinear impacts of the convergence of digital and green technologies on regional total factor productivity (TFP). Using data from 30 provinces and cities in China from 2010 to 2022, the study constructs a panel threshold model with business environment and intellectual property protection as threshold variables to investigate their roles in mediating the effects of digital–green technology convergence on regional TFP. The key findings are as follows: (1) The linear analysis reveals that the convergence of digital and green technologies significantly enhances regional TFP. (2) The nonlinear analysis demonstrates a nonlinear relationship between the convergence of these technologies and regional TFP. (3) The threshold effect test identifies a single-threshold effect for the business environment, showing that once the threshold is surpassed, the positive influence of the convergence of digital and green technologies on TFP increases. Additionally, a double-threshold effect is found with intellectual property protection; as intellectual property protection surpasses the first and second thresholds, the positive impact initially strengthens but then weakens. (4) A heterogeneity analysis shows that the convergence of digital and green technologies significantly contributes to TFP in the eastern regions, while the effects in central and western regions are not significant.

Granular origins of the Chinese business cycle

ABSTRACT Recent events in China, like Foxconn’s factory downsizing and Evergrande’s bankruptcy, have significantly impacted regional economies, highlighting how idiosyncratic shocks from large firms can generate aggregate effects. Using the ‘granular hypothesis’, which posits a significant impact of large firms’ actions on the macroeconomy, this study investigates how idiosyncratic shocks from large Chinese firms affect regional productivity growth and markups. Our findings demonstrate that idiosyncratic shocks to the 100 largest firms per province significantly impact regional labour productivity and total factor productivity growth but not gross regional domestic product growth. Subsequently, we examine how idiosyncratic shocks impact product market distortions, revealing that idiosyncratic shocks to large firms increase markups in regional markets, suggesting amplified market power.

The impact of carbon emission trading policy on regional total factor productivity

The impact of carbon emission trading policy on regional total factor productivity

How does regional cooperation affect green total factor productivity?—Evidence from the Guangdong-Hong Kong-Macao Greater Bay area in China

As a key regional development strategy, regional cooperation affects the sustainable development of city-regions. This study uses social network analysis, spatial analysis, and negative binomial regression analysis to investigate the impacts of regional cooperation on green total factor productivity (GTFP) in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The main findings are as follows. First, regional cooperation is growing closer, unfolding a trend of networked and polycentric development patterns in the GBA. Second, the GTFP of most cities exhibits an upward trend, indicating a continuous improvement in green economic development in the GBA. Third, different types of regional cooperation have heterogeneous impacts on GTFP, with economic cooperation being essential for regional GTFP. Overall, this study provides a systematic and comprehensive analysis of the environmental effects of regional cooperation.

Global Value Chain, GVC、biased technological change and reginal total factor productivity differences

We discuss the link between global value chains (GVC) and the widening differences in total factor productivity (TFP) across regions. Firstly, the empirical evidence from China indicates that differences in technological bias may be a vital factor in TFP differences. Further, we test the connection between GVC and regional TFP differences, providing a new explanation from the perspective of technological bias. Due to different speeds of factors mobility, GVC can intensify regional factor cost disparities, thereby expanding technological bias differences. As a result, it impedes regional TFP convergence. Finally, we have tested the above mechanism using data from China.

The impact of new digital infrastructure on green total factor productivity

As a new engine driving economic development, new digital infrastructure plays a significant role in enhancing green total factor productivity. Based on 2011–2020 panel data covering 30 Chinese provinces, this study empirically investigates the effects and mechanisms of new digital infrastructure on green total factor productivity. The results show that new digital infrastructure can significantly improve regional green total factor productivity, and this conclusion remains valid after a series of robustness tests and regressions of instrumental variables. Further mechanism research shows that new digital infrastructure indirectly promotes the growth of green total factor productivity by improving capital misallocation and driving technological innovation, while there is no mediating mechanism of labor misallocation. In addition, there is significant heterogeneity in the impact of new digital infrastructure on green total factor productivity. Especially during periods of high government attention, in the eastern regions, and in areas with higher levels of human capital, the positive incentive effect of new digital infrastructure is more significant. This study provides empirical evidence and policy references for promoting and amplifying the green growth effects of new digital infrastructure.

Analysis of the impact factors of industrial structure upgrading on green total factor productivity from the perspective of spatial spillover effects

Green development has already been a vital part of China's high-quality economic progress in the future, and accelerating the restructuring and improvement of the industrial structure plays a crucial roll in promoting a regional green economy. In this article, based on the data of 278 prefecture-level cities in China from 2011 to 2020, the SBM directional distance function and Malmquist-Luenberger (ML) index are used to gauge regional green total factor productivity (GTFP). The spatial Durbin model is also introduced to investigate the spatial spillover mechanism of GTFP and its influencing factors under the optimized and upgraded industrial structure. The study indicates that the optimization of the industrial structure have an important effect in promoting the growth of GTFP. Specifically, industrial structure integration has a greater bearing on the increase in GTFP, while there is a difference in the effectiveness of industrial structural advancement and rationalization of GTFP. Economic growth level inhibits the enhancement of GTFP, and urbanization level and industrial agglomeration have a significant negative impact on the enhancement of GTFP in the spatial dimension. On a different hand, foreign investment degree and government intervention level have a significant positive affect on regional GTFP. In addition, this study fills the research gap of the regional industrial structure upgrading influence on GTFP, which has great theory and practice value for promoting China's high quality growth of green economy.

Regional efficiency and total factor productivity change for small and medium sorghum producers in Zambia: A slacks-based measure and Malmquist index approach

Zambia's efforts to promote countrywide production of sorghum is backed by a number of apropos factors. It is not only an adaptive response to the climate change challenge, but also a dietary diversity improvement measure, to achieve food and nutrition security. Further, improved sorghum production will supply emerging agro-industries, especially specialty foods, beverages and stock feed manufacturing in the country. However, regional sorghum production efficiencies in Zambia are not well known. This paper attempts to evaluate regional sorghum production technical efficiencies (TE), as well as Total Factor Productivity (TFP) change from 2011 to 2022. To study these aspects, we apply non-parametric Data Envelopment Analysis (DEA) techniques such as the Slacks-Based Measure (SBM), and the Malmquist Productivity Index (MPI), followed by bootstrap OLS regression respectively. Cross-sectional estimates from the SBM model for the 2022 cropping season indicate that average TE for small and medium sorghum farmers in Zambia was 85 percent. Sorghum production could be expanded by 411.90 t by improving TE in five of ten provinces in Zambia. The MPI shows that TFP for sorghum production in Zambia declined by 21 percent, mainly due to deteriorating sorghum production technology. Populations, rurality, agro-ecological zone IIB are the factors associated with EC and TFP decline.

The regional pervasiveness of local productivity shocks on macroeconomic output in Europe

ABSTRACT This paper studies inter-regional technology spillover in EU-28 countries and shows how regional total factor productivity (TFP) shocks shape aggregate productivity in Europe. This paper provides evidence that several regions play a significant role as common factors in the production function of almost every other region. We provide a procedure to identify and test these regions through inter-regional trade flows. In our estimations, the ten most pervasive regions out of 272 NUTS 2 regions explain about 12% of the total factor productivity growth in the EU-28 countries. Significant heterogeneity exists in the region’s ability to absorb imported knowledge among these countries. Local knowledge stock’s contribution is limited compared to imported knowledge due to a regional disparity in R&D distribution. Our work contributes to understanding the granular features of spatial macroeconomics, with a particular focus on inter-regional trade flows and knowledge spillovers.

The gains from changes in internal trade costs: A quantitative analysis of China

AbstractWe study how internal trade costs affect the Chinese economy. Combining regional and industry data with a multiregional multisector general equilibrium model, we quantify the magnitude of total trade costs and institutional trade costs, and the impact of their changes on aggregate, regional, and sectoral total factor productivity, gross domestic product, and welfare. Using unique data, we estimate the sectoral trade elasticity of internal trade in 16 tradable sectors. We use our calibrated model to perform a variety of counterfactual exercises. We find that the welfare gains are negative for a 5% reduction in total trade costs and for the elimination of institutional trade costs, which can be attributed to inherent inefficiencies in the economy. However, as total trade costs decrease further, the positive welfare effect significantly exceeds the impact of inefficiency. The regional and sectoral effects of changes in trade costs show that the spatial structure of the economy, input‐output linkages, and local factors together determine the heterogeneity of sectoral and regional consequences. Finally, we infer the relative changes in China's internal trade costs from 2012 to 2017, and calculate their economic effects.

The Impact of E-Commerce Transformation of Cities on Green Total Factor Productivity

The e-commerce-oriented transformation of cities is an important measure to enhance the vitality of economic development, improve the efficiency of resource allocation, and provide a new boost to the green and high-quality development of regions. Taking the quasi-natural experiment of national e-commerce demonstration city construction as the starting point, using the panel data of 281 prefecture-level cities in China from 2005 to 2021, we measure the green total factor productivity of cities by using the super-efficient SBM model with non-expected outputs and the global reference GML index method, and use the multi-period propensity score matching double-difference method to examine the impact of urban e-commerce-oriented transformation on the green total factor productivity of the city and the intrinsic mechanism of the effect. The results show that the urban e-commerce transformation policy can significantly promote regional green total factor productivity, and this result still holds after a series of robustness tests, such as changing the time point of the policy, randomly selecting the placebo proposal for the treatment group, and changing the matching method; the effect is regionally heterogeneous, and is more pronounced in large cities, non-provincial capitals, eastern cities, central cities, and non-resource-based cities; the urban e-commerce transformation mainly promotes the improvement of urban green total factor productivity through three channels: the industrial structure upgrading effect, the economic agglomeration effect, and the green technology innovation effect.

Investigating and improving the ecological efficiency of urban agglomeration based on Super-SBM model.

The management of ecological efficiency (eco-efficiency) is of great significance to promote the sustainable development of urban agglomerations. The objective of this research is to evaluate the eco-efficiency of urban agglomerations. Taking the Yangtze River Delta Urban Agglomeration (YRDUA) as a case study, this study evaluated the spatio-temporal evolution characteristics of the eco-efficiency by using the Super-SBM model. Additionally, the factors that affect the efficiency fluctuations are analyzed by decomposing the Global Malmquist-Luenberger (GML) index and the input-output redundancy rates are measured. The study additionally put forth a conceptual framework aimed at evaluating eco-efficiency within the context of urban agglomerations. The findings indicated that the eco-efficiency of the YRDUA had not reached the effective level with noticeable variations across different regions. The resource redundancy of the YRDUA was severe and negatively correlated with eco-efficiency. Environmental pollution was the primary cause of efficiency loss. Technological progress was the main driving factor of regional total factor productivity (TFP), but technical efficiency still needed to be improved. Therefore, it is urgent for the YRDUA to improve the efficiency of its industrial structure and foster the harmonious growth of various sectors, in order to achieve the sustainable utilization of natural resources and the preservation of the ecological environment.

How can China’s coal cities achieve high-quality development?—An empirical study based on the “resource curse” hypothesis

The relationship between the utilization of natural resources and high-quality economic growth has always been a concern of the academic community. China’s coal cities to varying degrees suffer from population outflow, economic stagnation or even negative growth, precipitous drop in housing prices, serious environmental damage, and other problems. There is a negative correlation from the perspective of location between the enrichment of coal resources and economic development in China, confirming the existence of coal “resource curse” in China’s interprovincial scope. Through establishing quantitative models. This article analyzes the transmission mechanism of the nonlinear impact of coal industry development on regional total factor productivity (TFP) from the 2 paths of industrial structure evolution and factor allocation efficiency. The sample panel data of 44 coal cities in China from 2003 to 2017 are examined to empirically test the impact of coal industry development in China’s coal cities on TFP and its transmission mechanism. In the coal industry development, the service industry is being squeezed out to some degree, while the manufacturing industry is suffered from “double deindustrialization” and severe shrinkage. Such an industrial structure transformation is one of the transmission paths of “resource curse.” The development of human capital (HC) and finance has a threshold effect on the impact of the coal industry development on the TFP of coal cities. The excessive growth of coal industry has a restraining effect on the development level of HC and finance that influences the efficiency of resource allocation, resulting in failure of such industries to promote the TFP. With the improvement of HC and finance sectors in coal cities, the development of coal industry has promoted the TFP. Therefore, this article holds that the government should aim at improving the efficiency of factor allocation, formulate scientific and reasonable industrial adjustment policies, upgrade industrial structure, and actively develop manufacturing and producer services. Meanwhile, in the process of coal city development, it should pay attention to improving HC input, actively develop green finance industry to promote the development of capital market, and promote the green transformation of coal industry. Actively develop new sources of energy. The sustainable development of coal cities should be guided according to different life cycle stages in order to achieve healthy and sustainable development and break the “resource curse.”

Digital development and the improvement of urban economic resilience: Evidence from China

Digital technologies are empowering economic and social development, which attracts scholars’ attention to the relationship between digitalization and economic resilience, However, the empirical analysis for different countries and stages of development are inconsistent, and the influencing mechanism need to be further explored. Using panel data for 284 prefecture-level cities in China from 2007 to 2020, this study examines the impact of urban digital development on economic resilience. The findings are as follows: (1) The increased digitalization significantly enhances the urban economic resilience, and this effect was more pronounced in eastern regions and large-scale cities. (2) The relationship between digitalization and economic resilience follows an inverted U-shape as population density increases. (3) The spatial effects show that increased digitalization has a significant positive effect on local economic resilience, but weakens the resilience of the surrounding areas. (4) The analysis of mechanism reveals that the positive impact of digitalization on the urban economic resilience is mainly achieved by improving the quality of the regional labor force and total factor productivity. The study provides theoretical and empirical evidence for accelerating the digital construction, fully releasing the digital dividend in order to strengthen economic resilience.

Digital economy and green total factor productivity-based on the empirical research on the resource-based cities.

Green economy is the core content of the high-quality economic development, and the digital economy is the new driving force to accelerate the realization of high-quality economic development. In this regard, this paper selects 248 resource-based cities in China from 2011 to 2019 as the research objects and uses the fixed effect model and mediation effect model to test the relationship between digital economy and regional green total factor productivity. We get the following conclusions: First, there is the nonlinear relationship between digital economy and regional green total factor productivity, and this relationship shows the inverted U-shape. Secondly, digital economy can influence regional green total factor productivity through the path transmission mechanism of regional technological innovation, industrial structure, and environmental regulation. Finally, the effect of digital economy on regional green total factor productivity is heterogeneous, especially in the eastern region and cities with high human capital level. Based on the digital economy, the findings of this paper provide theoretical basis and reference suggestions for promoting the green development of regional economy. The government should attach importance to regional green development, actively guide the digital economy to promote green development, accelerate the development of the digital economy, and achieve high-quality economic development finally.

Does the new digital infrastructure improve total factor productivity?

AbstractImproving total factor productivity (TFP) is essential to achieving high‐quality and sustainable economic development. The existing literature mainly focuses on the impact of traditional infrastructure on TFP but generally ignores the role of new digital infrastructure in TFP and does not test impact mechanisms and whether there is heterogeneity in effects. Using panel data of 30 regions in China from 2006 to 2017, this paper analyzes the impact of new digital infrastructure on TFP and its mechanisms. The results are as follows: (1) New digital infrastructure can significantly improve regional TFP. After the robustness test, the results still support the findings. (2) New digital infrastructure can promote technological innovation, optimize factor allocation, and achieve economies of scale, thus improving TFP. (3) Further analysis shows that the positive effect of new digital infrastructure on TFP shows significant heterogeneity. In regions with high economic development levels, high research and development (R&D) levels, and high traditional infrastructure development levels, the positive effect of new digital infrastructure on TFP is more obvious. These findings not only enrich the literature on digital infrastructure and economic growth but also serve as a reference for governmental departments as they optimize their strategy for developing digital infrastructure and realizing sustainable economic development.

How do R&D factors affect total factor productivity: based on stochastic frontier analysis method

<p><big>Based on provincial panel data from 1998-2018, this paper estimates research and development (R&D) factors, and a stochastic frontier analysis (SFA) model is constructed to examine the effects of R&D factors on regional total factor productivity (TFP). The results show that both R&D capital stock and R&D personnel can significantly promote regional TFP, but the productivity-enhancing effect of R&D factors is different between regions. Specifically, R&D capital and R&D personnel can promote TFP in eastern and central provinces, and the promotion effect is not significant in western provinces. In addition, compared with investment-driven regions, innovation-driven regions are more likely to enhance TFP by R&D factors.</big></p>

How to achieve sustainable development: From the perspective of science and technology financial policy in China.

To solve coordination between economic development and pollutant emissions, it is necessary to face the innovation problem of energy saving and emission reduction. Promoting the effective integration of tech and the financial system is an effective way to solve this problem. According to panel data for prefecture-level cities in China, this paper is based on the pilot policy of combining science and technology with finance implemented in 2011 as a quasi-natural experiment and uses the difference-in-differences(DID) method to evaluate the impact of Science and Technology Financial Policies (STFP) on the air pollutant emission, meanwhile, considering the spatial overflow effect of policy implementation. The research results show that: (1) The STFP has certain inhibitions on pollutant emissions, and this finding holds after a series of robustness tests. (2) The policy has different effects on cities that have different scale, different regions, and different government efficiency. (3) From the results of mechanism analysis, the policy mainly enhances regional pollutant emission reduction capacity through ways such as increasing regional green total factor productivity, enhancing regional science and technology levels, and promoting regional industrial structure optimization. (4) The policy shows a negativespatial spillover effect in reducing pollutant emissions.

The Impact of Digital Economy Agglomeration on Regional Green Total Factor Productivity Disparity: Evidence from 285 Cities in China

Purpose—The unbalanced layout of digital economy agglomeration has a significant impact on regional high-quality development. This study aims to explore the impact of digital economy agglomeration on regional green total factor productivity (GTFP) disparity from two aspects, including theoretical mechanism and empirical effect. Design/methodology/approach—Based on the empirical data of 285 cities above the prefecture level in China from 2003 to 2018, super-efficiency undesired SBM model, spatial Dubin model, and intermediary effect model are utilized to analyze how digital economy agglomeration affects regional GTFP disparity. Findings—The results show that the GTFP of China is on the rise as a whole, but the gap among cities is gradually expanding. Digital economy agglomeration has significant positive direct effects and positive spillover effects on GTFP, but digital economy agglomeration also aggravates the regional GTFP disparity due to disequilibrium industrial upgrading mechanism. Originality/value—The paper confirms the relationship between digital economy agglomeration and regional GTFP disparity for the first time. Different from previous studies, the industrial upgrading mechanism in this paper includes industrial structure upgrading and industrial spatial evolution. The study calls for the industrial bottleneck of “low-end locking” in underdeveloped cities to be noticed.

Research on the Tax Policy Effect of Promoting Industrial Green Transformation and Upgrading under the Background of Double Carbon: An Analysis Based on Green Total Factor Productivity Data

Taking the promotion of tax policy as the starting point, this project explores the mechanism of tax policy in promoting industrial green upgrading and energy conservation and emission reduction on the basis of literature induction and combing, and combines the relevant data of 30 regions in China from 2008 to 2021 to build an SBM model to measure the process of regional green total factor productivity, and empirically analyze the impact effect of tax policy on industrial green upgrading. Focus on the effects of different calibers of green tax policies on the improvement of green total factor productivity; The interaction of different technological progress paths with green taxation. The research in this project will help deepen the understanding of tax policies that promote the green transformation of the industry, and help to reduce carbon emission intensity and achieve green development in the new development stage.