Internet Development And Total Factor Productivity Growth in Manufacturing Industry
DENG Zongbing1,2, WEN Jiangxue1, WANG Ju1
1. School of Economics and Management, Southwest University, Chongqing 400715, China; 2. Research Center for Inclusive Finance and Agricultural and Rural Development, Southwest University, Chongqing 400715, China
Abstract Based on the panel data of 285 cities in China from 2006 to 2019, this paper brings Internet development into the analysis framework of manufacturing total factor productivity improvement, and examines the effect sources, stage characteristics and mechanism of Internet development on manufacturing total factor productivity. There are following findings: Internet development can promote total factor productivity growth in manufacturing industry, mainly through promoting technological progress; The dividend of Internet development is the most significant in the central region, followed by the eastern region, and the weakest in the western region; Only when the level of Internet development exceeds the second threshold (0.0753) can it have a significant promoting effect on manufacturing total factor productivity, and about 20% of cities still fail to reach this threshold by 2019. The development of Internet has the effects of optimal allocation of resources and knowledge spillover. It indirectly promotes the total factor productivity of the manufacturing industry by optimizing the industrial structure and improving the ability of innovation. However, its economies of scale effect is not obvious, and it has failed to indirectly promote the total factor productivity of the manufacturing industry by reducing costs.
DENG Zongbing,WEN Jiangxue,WANG Ju. Internet Development And Total Factor Productivity Growth in Manufacturing Industry. Economic Survey, 2023, 40(2): 089.