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The impact of digital government services on manufacturing productivity: China's pilot city insights

Author

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  • Yu, Cheng
  • Gao, Dengyun
  • Sun, Haixia

Abstract

China's Internet + Government Service pilot cities (I + GS PCs) policy is a significant approach for fostering the digital transformation of government services in China, but the policy's impact on firms’ total factor productivity (TFP) remains unknown. This study finds that the I + GS PCs policy indeed improves manufacturing firms’ TFP by reducing transaction costs, enhancing resource allocation efficiency and strengthening digital innovation capabilities, and this effect is heterogeneous across firms. Our study contributes to the body of research on the relationship between digital government and firm performance and has certain policy implications for promoting governments’ digital transformation.

Suggested Citation

  • Yu, Cheng & Gao, Dengyun & Sun, Haixia, 2025. "The impact of digital government services on manufacturing productivity: China's pilot city insights," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016295
    DOI: 10.1016/j.frl.2024.106600
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    Keywords

    Internet + government services; Digital government; Total factor productivity; China;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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