Research On The Impact Of Digital Economy On Total Factor Productivity

With the vigorous development of the network technique,the data in social production and operation activities has gradually become an important kind of resources.The digital economy as the key factor of production has also emerged and is profoundly affecting a new round of productivity revolution.In the last few years,the state has proposed that the new era must unswervingly implement the new concept of development.The previous extensive and resource-driven economic growth is no longer suitable for the current stage,China should take a new road of high-quality development.In such a circumstance,the new impetus represented by the digital economy is growing.,and the continuous integration of digital technology and traditional economy is also changing various aspects of production,circulation,consumption and import and export,promoting the upgrading of industrial structures and effectively increase productivity in all sectors.Total Factor Productivity(TFP)is a significant indicator to measure the efficiency of an economy’s economic operation,which reflects the capability and level of a country or region to achieve high-quality development,and our government has repeatedly emphasized the significance of improving TFP for high-quality economic development.Based on this background,this paper compares the specific connotation of digital economy,studies the influence mechanism and economic effect of digital economy on TFP,and explores the specific realization path of high quality development in China.In order to discuss the relationship between digital economy and TFP,selecting the annual panel data of 30 provincial regions in China from 2013 to 2020.Before all others,according to the research of authoritative institutions and scholars,having identified 10 measurement variables in four aspects,constructing a digital economy evaluation index system,after that,a evaluation method,which is based on Entropy Method,has been used to sequence Digital economy index.With regard to TFP,DEA-Malmquist method is used to measure the TFP of 30 provincial regions in China.The measurement results show that the fluctuation of TFP in each region of our country is large,and the upward trend is not obvious.The measured digital economy and TFP are used as the core variables in the empirical study,and appropriate control variables are selected for the regression analysis of the two-way fixed effects model,and the results of this regression are used as the results of the benchmark regression,through which it is found that the development of the digital economy significantly contributes to the improvement of TFP.In order to deal with the inaccuracy of regression estimation caused by the endogeneity problem,two highly recognized instrumental variables of the digital economy were selected for the two-stage regression analysis of the benchmark model endogeneity problem,and it was found that even after considering the endogeneity effect,the digital economy has promoted the development of TFP.The heterogeneity analysis and the robustness test of replacing the core variables also support this finding,and the heterogeneity analysis also finds that the level of the digital economy has a side effect on its promotion effect.Identification of Causal Mediation Effects shows that the transmission mechanism of the indirect effect of the digital economy on TFP through industrial upgrading exists objectively.At last,according to the research content and empirical analysis results,this paper summarizes and puts forward some suggestions.First,all provinces should strengthen the digital infrastructure construction and seek more opportunities to adapt to the future digital economy situation.Secondly,we should find a realistic path for the development of local digital economy according to local conditions.Third,all administrative regions should pay attention to the smooth transformation of the labor force,and try to alleviate the frictional unemployment caused by industrial transformation.Fourth,regions actively seek inter-regional cooperation and further enhance the level of regional openness.