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Digital economy and total factor productivity of tourism enterprises in China: the perspective of market competition theory

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  • Rui Tang

Abstract

The digital economy drives the increase in total factor productivity (TFP) of tourism enterprises. The Spatial Durbin Model is used to analyse the influence of digital economy on TFP of tourism enterprises based on the market competition theory. The findings suggest that the digital economy promotes the TFP of tourism enterprises with spatial diffusion effect in China. Heterogeneity tests indicate that the digital economy has contributed to the growth of TFP of travel agency and the TFP of tourism enterprises in the eastern and central regions. Additionally, the spatial diffusion effect of the digital economy lags behind its direct effect. The digital economy promotes TFP growth of tourism enterprises by improving the market environment. The convergence effect of digital economy and market competition on TFP becomes significant with the growth in TFP of tourism enterprises. These findings are an extension and complement to the effective competition theory and optimal competitive intensity theory.

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  • Rui Tang, 2024. "Digital economy and total factor productivity of tourism enterprises in China: the perspective of market competition theory," Current Issues in Tourism, Taylor & Francis Journals, vol. 27(1), pages 76-91, January.
    • Handle: RePEc:taf:rcitxx:v:27:y:2024:i:1:p:76-91
    DOI: 10.1080/13683500.2022.2159338
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