Original scientific paper
https://doi.org/10.1080/1331677X.2023.2167221
How does digital technology affect total factor productivity in manufacturing industries? Empirical evidence from China
Shihong Zeng
Hongru Sha
Yongyi Xiao
Abstract
Extensive studies have discussed the relationship between digital
technology and total factor productivity (T.F.P.) in manufacturing
industries, but far less attention is paid to the nonlinear relationship.
Based on the panel data of China’s manufacturing industries
and matching data of National Intellectual Property Public Service
Network from 2000 to 2019, this article aims to explore how
digital technology affects T.F.P. in manufacturing industries. The
result demonstrates that a significant inverted U-shaped relationship
is between digital technology and T.F.P. The threshold in
high technology manufacturing industries is larger than that in
low and middle technology manufacturing industries. With the
progress of digital technology, the expenditure of technology and
equipment upgrading is increasing. However, the marginal return
of technology and equipment is decreasing, besides technology
innovation. The case of China perhaps provides new insights into
manufacturing industries in developing country to gain sustainable
development.
Keywords
digital technology; manufacturing total factor productivity (T.F.P.); inverted U-shaped relationship; technology and equipment upgrading
Hrčak ID:
306479
URI
Publication date:
31.3.2023.
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