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The Impact of Digital Transformation on Total Factor Productivity

Year: 2024

Type: article

Abstract: Amid the rapid construction of a new development paradigm, digital transformation has emerged as a critical driver of social progress and economic development. This paper examines the impact of digital transformation on corporate total factor productivity (TFP) based on annual data from A-share listed companies from 2010 to 2023. The study reveals that digital transformation significantly enhances TFP, a conclusion supported by various robustness tests. Furthermore, digital transformation empowers TFP growth by reducing information asymmetry and alleviating financing constraints. Heterogeneity analysis indicates that large enterprises and highly profitable firms tend to exhibit stronger digital transformation capabilities, resulting in more pronounced TFP improvements. This study provides valuable insights for fostering new productivity dynamics and promoting high-quality corporate development.

Source: Journal of Applied Economics and Policy Studies

DOI: 10.54254/2977-5701/13/2024127

Authors: Peilin Li, Shaohua Cui

Institution: Henan University of Economic and Law

Language: English

Topic: Digital Economy and Transformation

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: hybrid

OpenAlex ID: W4404868087

FWCI: 0.698

Cites:

Cited by: 3

Related to: 10