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New-type infrastructure and total factor productivity: evidence from listed manufacturing firms in China

Author

Listed:
  • Huwei Wen

    (Nanchang University)

  • Jinxia Zhan

    (Nanchang University)

Abstract

The new-type infrastructure, which leads to the reform and upgradation of the manufacturing industry, is the pillar of the modern economic system. This study looks at the impact of new-type infrastructure on the total factor productivity of firms on the basis of panel data of listed manufacturing firms in China from 2007 to 2020. This study finds that the new-type infrastructure can significantly enhance the total factor productivity of manufacturing firms. The promotion effects of new-type infrastructure on total factor productivity are heterogeneous according to the characteristics of manufacturing firms. Moreover, the effects are greater in these larger, innovative, externally competitive, and mature firms. Specifically, the new-type infrastructure encourages manufacturing firms to increase innovation activities, thereby improving corporate total factor productivity. In addition, the new-type infrastructure can enhance the efficiency of resource allocation. That is, the new-type infrastructure can increase the investment of manufacturing firms with higher market value and productivity.

Suggested Citation

  • Huwei Wen & Jinxia Zhan, 2023. "New-type infrastructure and total factor productivity: evidence from listed manufacturing firms in China," Economic Change and Restructuring, Springer, vol. 56(6), pages 4465-4489, December.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:6:d:10.1007_s10644-023-09561-1
    DOI: 10.1007/s10644-023-09561-1
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    More about this item

    Keywords

    New-type infrastructure; Manufacturing firms; Total factor productivity; Panel quantile regression;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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