The Impact Of Digital Transformation On Total Factor Productivity Of Manufacturing Enterprise And The Mechanism

Under the background of ongoing impact of COVID-19 and the great changes all over the world,Chinese manufacturing industry is facing increasing domestic and foreign constraints,and How to improve the total factor productivity of manufacturing industries to inject new vitality and new momentum into China’s economic development has become an urgent issue to be addressed.In recent years,China seizes new opportunities for the development of the digital economy,as well as China has vigorously promoted the development of a new generation of digital technology,accelerating the implementation of the strategy of strengthening network power,Obviously,the development of digital technology and digital economy has promoted China ’ s economic development,but at the micro level,there are few relevant empirical studies on whether the digital transformation of manufacturing enterprises can promote their total factor productivity and corporate value.Based on this,this paper studies the impact of digital transformation on the total factor productivity of manufacturing enterprises and its mechanism of action.The research conclusions of this paper provide new empirical evidence for understanding the economic effects of enterprise digital transformation,and also provide important policy implications for consolidating the micro foundation necessary for high-quality economic development.Against the above background,firstly,this paper compares the relevant domestic and international studies on digital transformation and total factor productivity of enterprises.Secondly,based on the relevant theories,we analyse the inner mechanism and mechanism of total factor productivity of manufacturing enterprises empowered by enterprise digital transformation,and then select Chinese A-share listed manufacturing companies from 2011 to 2020 as the initial research sample.Robustness tests were conducted on the regression results.In addition,a series of methods are used to test the robustness of the regression results.Again,the impact of digital transformation on total factor productivity of manufacturing firms is investigated in terms of firm type and geographical location.Finally,targeted countermeasures are proposed based on the findings of the study,and the shortcomings of the study are pointed out.The paper has the following three findings:(1)The empirical study shows that digital transformation significantly improves the total factor productivity of manufacturing enterprises.This research finding has a strong robustness.(2)In terms of the mechanism of action,digital transformation can promote total factor productivity by reducing external transaction costs,improving the efficiency of labour investment and accelerating the operation of supply chain resources.(3)Heterogeneity analysis found that digital transformation has a greater effect on total factor productivity improvement of manufacturing enterprises for high-tech enterprises and for the eastern and southern regions.