Analysis Of Digital Finance On Total Factor Productivity Of Firms

With the growing popularity of the digital economy,emerging digital technologies are being used in all aspects of the economy and society.The traditional financial sector has also begun its digital transformation,and digital finance has emerged.At the same time,the total factor productivity of enterprises in China is generally not high.The report of the 19 th National Congress of the Communist Party of China clearly points out the need to change this situation.Digital financial development and corporate productivity have since become a hot topic of interest for scholars.Grasping the connection between the two is of great significance for implementing China’s strategy of high-quality economic development and guiding financial services to the real economy.Taking the theoretical analysis as a starting point,this dissertation analyzes the path of digital finance acting on the productivity of enterprises from two aspects.In terms of quantitative effect,digital finance development weakens enterprises’ financing constraints and promotes their adoption of financialization behaviors,which has an impact on production efficiency.In terms of qualitative effect,digital finance is supposed to improve enterprises’ investment efficiency and influence their innovation efficiency,which is ultimately reflected in production efficiency.These factors are linked and affect each other,so it is impossible to directly predict the direction of the effect of digital finance on the productivity of enterprises.In the empirical session,this dissertation first clarifies the level of digital finance development in each province of China’s mainland from 2011 to 2020.Then this dissertation also matches the relevant variables of listed enterp rises in the same period and verifies the relationship between di gital finance and enterprise productivity.It is found that the development of digital finance has an overall positive driving effect on the improvement of enterprise productivity.And the impact is mainly achieved by alleviating the financing constraints of enterprises and promoting their financialization.However,digital finance is not conducive to the improvement of firms’ innovation efficiency.Meanwhile,digital finance has an obvious asymmetry in the improvement of enterprise productivity,whether from the geographical latitude,economic development dimension or enterprise characteristics dimension.Based on the above conclusions,it is recommended that the government should continue to promote the stable development of digital finance by combining with the proposal of new public infrastructure construction and fully consider ing the regional differences.In the context of Rural Revitalization,financial institutions should be encouraged to make every effort to develop highly accurate and full-process digital financial services according to the characteristics of different groups.In addition,it is important to stop enterprises being distracted from their intended purpose and support the development of the real economy.Equally important is the need to establish a risk prevention and control system to avoid all kinds of risks.