IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v31y2023i1p360-378.html
   My bibliography  Save this article

Path to sustainable development: Does digital economy matter in manufacturing green total factor productivity?

Author

Listed:
  • Xiaoli Hao
  • Xinhui Wang
  • Haitao Wu
  • Yu Hao

Abstract

In the context of the outbreak of the COVID‐19 pandemic and China's “digital power” strategy, the realization of a green shift of manufacturing has become a necessary condition to promote the economy, and the digital factor has increasingly become a new driving force. The DEA‐Malmquist index and entropy method were used to measure the manufacturing green total factor productivity (GTFP) and the level of digital economy level from 2011 to 2018, respectively. This study then explored the impact of digital economy on manufacturing GTFP based on the system generalized method of moments (GMM) model, as well as the adjustment effects of talent aggregation and financial scale according to the moderating model. This research came to four conclusions. (1) The digital economy can significantly improve the manufacturing GTFP of China, and the influence shows the characteristic of a “marginal increase”; (2) notably, the perspective of manufacturing GTFP decomposition indicates that the digital economy exerts a significant positive effect on manufacturing technical efficiency during the current period but obviously hinders technical progress; (3) interestingly, a mechanistic test showed that the two dimensions of innovation environment—talent aggregation (0.385) and financial scale (0.359)—play critical moderating roles in the influencing process; and (4) the influence has evident regional heterogeneity—it is significantly positive in the east and negative in the central region and west. Finally, corresponding policy suggestions are suggested.

Suggested Citation

  • Xiaoli Hao & Xinhui Wang & Haitao Wu & Yu Hao, 2023. "Path to sustainable development: Does digital economy matter in manufacturing green total factor productivity?," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 360-378, February.
    • Handle: RePEc:wly:sustdv:v:31:y:2023:i:1:p:360-378
    DOI: 10.1002/sd.2397
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.2397
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.2397?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Abdul Waheed & Qingyu Zhang & Yasir Rashid & Muhammad Sohail Tahir & Muhammad Wasif Zafar, 2020. "Impact of green manufacturing on consumer ecological behavior: Stakeholder engagement through green production and innovation," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1395-1403, September.
    2. Kurt Kratena, 2007. "Technical Change, Investment and Energy Intensity," Economic Systems Research, Taylor & Francis Journals, vol. 19(3), pages 295-314.
    3. Yoshikawa, Hiroshi, 2000. "Technical Progress and the Growth of the Japanese Economy--Past and Future," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 16(2), pages 34-45, Summer.
    4. Biyun Ren & Liuying Li & Hongmei Zhao & Yunbo Zhou, 2018. "The Financial Exclusion In The Development Of Digital Finance — A Study Based On Survey Data In The Jingjinji Rural Area," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(01), pages 65-82, March.
    5. Dariush Khezrimotlagh & Yao Chen, 2018. "Data Envelopment Analysis," International Series in Operations Research & Management Science, in: Decision Making and Performance Evaluation Using Data Envelopment Analysis, chapter 0, pages 217-234, Springer.
    6. Jens M. Arnold & Katrin Hussinger, 2010. "Exports versus FDI in German Manufacturing: Firm Performance and Participation in International Markets," Review of International Economics, Wiley Blackwell, vol. 18(4), pages 595-606, September.
    7. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    8. Erik van der Marel, 2012. "Trade in Services and TFP: The Role of Regulation," The World Economy, Wiley Blackwell, vol. 35(11), pages 1530-1558, November.
    9. Xie, Rong-hui & Yuan, Yi-jun & Huang, Jing-jing, 2017. "Different Types of Environmental Regulations and Heterogeneous Influence on “Green” Productivity: Evidence from China," Ecological Economics, Elsevier, vol. 132(C), pages 104-112.
    10. Teece, David J., 2018. "Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world," Research Policy, Elsevier, vol. 47(8), pages 1367-1387.
    11. Xiaoyan Li & Yanchuan Mou & Huiying Wang & Chaohui Yin & Qingsong He, 2018. "How Does Polycentric Urban Form Affect Urban Commuting? Quantitative Measurement Using Geographical Big Data of 100 Cities in China," Sustainability, MDPI, vol. 10(12), pages 1-14, December.
    12. Haibo Sun & Zhonglu Liu & Yingchao Chen, 2020. "Foreign direct investment and manufacturing pollution emissions: A perspective from heterogeneous environmental regulation," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1376-1387, September.
    13. Ma, Dan & Zhu, Qing, 2022. "Innovation in emerging economies: Research on the digital economy driving high-quality green development," Journal of Business Research, Elsevier, vol. 145(C), pages 801-813.
    14. Wu, Haitao & Xu, Lina & Ren, Siyu & Hao, Yu & Yan, Guoyao, 2020. "How do energy consumption and environmental regulation affect carbon emissions in China? New evidence from a dynamic threshold panel model," Resources Policy, Elsevier, vol. 67(C).
    15. Hao, Yu & Li, Ying & Guo, Yunxia & Chai, Jingxia & Yang, Chuxiao & Wu, Haitao, 2022. "Digitalization and electricity consumption: Does internet development contribute to the reduction in electricity intensity in China?," Energy Policy, Elsevier, vol. 164(C).
    16. Hao, Xiaoli & Deng, Feng, 2019. "The marginal and double threshold effects of regional innovation on energy consumption structure: Evidence from resource-based regions in China," Energy Policy, Elsevier, vol. 131(C), pages 144-154.
    17. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    18. Zhengda Li & Dong Li & Wanping Yang & Xiaoyan Qi, 2022. "The spatial-temporal evolution and spatial convergence of ecological total factor productivity in china," Energy & Environment, , vol. 33(4), pages 617-639, June.
    19. Usman, Ahmed & Ozturk, Ilhan & Ullah, Sana & Hassan, Ali, 2021. "Does ICT have symmetric or asymmetric effects on CO2 emissions? Evidence from selected Asian economies," Technology in Society, Elsevier, vol. 67(C).
    20. Shuzhong Ma & Jiwen Guo & Hongsheng Zhang, 2019. "Policy Analysis and Development Evaluation of Digital Trade: An International Comparison," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 27(3), pages 49-75, May.
    21. Fátima Lanhoso & Denis Alves Coelho, 2021. "Emergence fostered by systemic analysis—Seeding innovation for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 768-779, July.
    22. Shimeng Liu, 2015. "Spillovers from Universities: Evidence from the Land-Grant Program," Working Paper 9410, USC Lusk Center for Real Estate.
    23. Wei Wei & Jianmin Tang, 2019. "Ownership transformation, firm performance and manufacturing growth in China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(2), pages 475-496, February.
    24. Ji, Yu & Shi, Lina & Zhang, Shunming, 2022. "Digital finance and corporate bankruptcy risk: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 72(C).
    25. Manli Cheng & Zhen Shao & Changhui Yang & Xiaoan Tang, 2019. "Analysis of Coordinated Development of Energy and Environment in China’s Manufacturing Industry under Environmental Regulation: A Comparative Study of Sub-Industries," Sustainability, MDPI, vol. 11(22), pages 1-20, November.
    26. Lan, Fei & Sun, Li & Pu, Wenyan, 2021. "Research on the influence of manufacturing agglomeration modes on regional carbon emission and spatial effect in China," Economic Modelling, Elsevier, vol. 96(C), pages 346-352.
    27. Liu, Shimeng, 2015. "Spillovers from universities: Evidence from the land-grant program," Journal of Urban Economics, Elsevier, vol. 87(C), pages 25-41.
    28. Meiling Wang & Silu Pang & Ikram Hmani & Ilham Hmani & Cunfang Li & Zhengxia He, 2021. "Towards sustainable development: How does technological innovation drive the increase in green total factor productivity?," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 217-227, January.
    29. Xiongbin Lin & Ting Ren & Hao Wu & Youzhi Xiao, 2021. "Housing price, talent movement, and innovation output: Evidence from Chinese cities," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 76-103, February.
    30. Zhu, Xuehong & Chen, Ying & Feng, Chao, 2018. "Green total factor productivity of China's mining and quarrying industry: A global data envelopment analysis," Resources Policy, Elsevier, vol. 57(C), pages 1-9.
    31. Emmanouil Tranos & Tasos Kitsos & Raquel Ortega-Argilés, 2021. "Digital economy in the UK: regional productivity effects of early adoption," Regional Studies, Taylor & Francis Journals, vol. 55(12), pages 1924-1938, December.
    32. Susheng Wang & Gang Chen & Xue Han, 2021. "An Analysis of the Impact of the Emissions Trading System on the Green Total Factor Productivity Based on the Spatial Difference-in-Differences Approach: The Case of China," IJERPH, MDPI, vol. 18(17), pages 1-18, August.
    33. Wu, Haitao & Hao, Yu & Ren, Siyu & Yang, Xiaodong & Xie, Guo, 2021. "Does internet development improve green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 153(C).
    34. Chenhui Ding & Chao Liu & Chuiyong Zheng & Feng Li, 2021. "Digital Economy, Technological Innovation and High-Quality Economic Development: Based on Spatial Effect and Mediation Effect," Sustainability, MDPI, vol. 14(1), pages 1-21, December.
    35. James E. Prieger, 2003. "The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?," Economic Inquiry, Western Economic Association International, vol. 41(2), pages 346-363, April.
    36. James E. Prieger, 2003. "The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?," Economic Inquiry, Western Economic Association International, vol. 41(2), pages 346-363, April.
    37. Kumbhakar,Subal C. & Lovell,C. A. Knox, 2003. "Stochastic Frontier Analysis," Cambridge Books, Cambridge University Press, number 9780521666633, November.
    38. Fan, Meiting & Shao, Shuai & Yang, Lili, 2015. "Combining global Malmquist–Luenberger index and generalized method of moments to investigate industrial total factor CO2 emission performance: A case of Shanghai (China)," Energy Policy, Elsevier, vol. 79(C), pages 189-201.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jianmin You & Wei Zhang, 2024. "Is the Spatiotemporal Evolution of Manufacturing Carbon Emissions in China Toward Convergence?," Energies, MDPI, vol. 17(23), pages 1-20, November.
    2. Liu, Biao & Wang, Jinman & Feng, Yu & Yang, Man & Mu, Jiayin, 2024. "Mitigating the disparities in carbon emission efficiency enhancement in China's coal resource-based cities," Energy, Elsevier, vol. 307(C).
    3. Siqian Chen & Xin Leng & Kun Luo, 2024. "Supply chain digitalization and corporate ESG performance," American Journal of Economics and Sociology, Wiley Blackwell, vol. 83(4), pages 855-881, September.
    4. Song, Xianyun & Hou, Wenwen, 2024. "Mineral resources and growth nexus in ASEAN countries: What role do trade diversification, ICT, and financial inclusion play in the resource curse spectrum?," Resources Policy, Elsevier, vol. 91(C).
    5. Yingying Xu & Wen Wang & Honggui Gao & Huaxiong Zhu, 2024. "The Impact of Green Mergers and Acquisitions on Corporate Environmental Performance: Evidence from China’s Heavy-Polluting Industries," Sustainability, MDPI, vol. 16(9), pages 1-24, April.
    6. Tao, Weiliang & Weng, Shimei & Chen, Xueli & ALHussan, Fawaz Baddar & Song, Malin, 2024. "Artificial intelligence-driven transformations in low-carbon energy structure: Evidence from China," Energy Economics, Elsevier, vol. 136(C).
    7. Guoteng Xu & Shuai Peng & Chengjiang Li & Xia Chen, 2023. "Synergistic Evolution of China’s Green Economy and Digital Economy Based on LSTM-GM and Grey Absolute Correlation," Sustainability, MDPI, vol. 15(19), pages 1-29, September.
    8. Shuguang Wang & Xuefu Sun & Shen Zhong, 2023. "Exploring the Multiple Paths to Improve the Construction Level of Digital Government: Qualitative Comparative Analysis Based on the WSR Framework," Sustainability, MDPI, vol. 15(13), pages 1-21, June.
    9. Umair Kashif & Junguo Shi & Sihan Li & Qinqin Wu & Qiuya Song & Shanshan Dou & Mengjie Wei & Snovia Naseem, 2024. "Navigating the digital divide: unraveling the impact of ICT usage and supply on SO2 emissions in China’s Yangtze River Delta," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    10. Lin Zhu & Xiaoming Li & Yao Huang & Fangyuan Liu & Chengji Yang & Dongyang Li & Hongpeng Bai, 2023. "Digital Technology and Green Development in Manufacturing: Evidence from China and 20 Other Asian Countries," Sustainability, MDPI, vol. 15(17), pages 1-20, August.
    11. Xiaowei Song & Jun Yang, 2024. "Assessing the impact of digitization and servitization of manufacturing firms in the context of carbon emission reduction: Evidence from a microsurvey in China," Energy & Environment, , vol. 35(7), pages 3340-3385, November.
    12. Sun, Chuanwang & Khan, Anwar & Xue, Juntao & Huang, Xiaoyong, 2024. "Are digital economy and financial structure driving renewable energy technology innovations: A major eight countries perspective," Applied Energy, Elsevier, vol. 362(C).
    13. Aiqin Zhang & Wenjie Zhang & Xiaoqiang Guo, 2024. "The Digital Economy, Integration of Productive Services and Manufacturing, and High-Quality Development of the Manufacturing Sector: Evidence from China," Sustainability, MDPI, vol. 16(23), pages 1-22, November.
    14. Yi-feng Zhang & Min-xuan Ji & Xiu-zhi Zheng, 2023. "Digital Economy, Agricultural Technology Innovation, and Agricultural Green Total Factor Productivity," SAGE Open, , vol. 13(3), pages 21582440231, August.
    15. Lu, Huaixin & Liao, Xinlin & Wu, Youqun, 2024. "From resource curse to green renaissance: Analyzing the dynamics of natural resource abundance on China's green total factor productivity during business cycles," Resources Policy, Elsevier, vol. 89(C).
    16. Fan, Min & Zhou, Yun & Lu, Zhixi & Gao, Sen, 2024. "Fintech's impact on green productivity in China: Role of fossil fuel energy structure, environmental regulations, government expenditure, and R&D investment," Resources Policy, Elsevier, vol. 91(C).
    17. Fengyu Zhao & Ziqing Xu & Xiaowen Xie, 2024. "Exploring the Role of Digital Economy in Enhanced Green Productivity in China’s Manufacturing Sector: Fresh Evidence for Achieving Sustainable Development Goals," Sustainability, MDPI, vol. 16(10), pages 1-21, May.
    18. Li Yang & Yue Xu & Junqi Zhu & Keyu Sun, 2024. "Spatiotemporal Evolution and Influencing Factors of the Coupling Coordination of Urban Ecological Resilience and New Quality Productivity at the Provincial Scale in China," Land, MDPI, vol. 13(12), pages 1-22, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Xiang & Chen, Yong & Huang, Wenli & Zhang, Xuping, 2023. "A new Malmquist-type green total factor productivity measure: An application to China," Energy Economics, Elsevier, vol. 117(C).
    2. Suo, Xuekun & Zhang, Longting & Guo, Rong & Lin, Han & Yu, Mingchuan & Du, Xiuhong, 2024. "The inverted U-shaped association between digital economy and corporate total factor productivity: A knowledge-based perspective," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    3. Xue, Yan & Tang, Chang & Wu, Haitao & Liu, Jianmin & Hao, Yu, 2022. "The emerging driving force of energy consumption in China: Does digital economy development matter?," Energy Policy, Elsevier, vol. 165(C).
    4. Chaofan Chen & Qingxin Lan & Ming Gao & Yawen Sun, 2018. "Green Total Factor Productivity Growth and Its Determinants in China’s Industrial Economy," Sustainability, MDPI, vol. 10(4), pages 1-25, April.
    5. Junhong Qu & Xiaoli Hao, 2022. "Digital Economy, Financial Development, and Energy Poverty Based on Mediating Effects and a Spatial Autocorrelation Model," Sustainability, MDPI, vol. 14(15), pages 1-24, July.
    6. Yujian Jin & Lihong Yu & Yan Wang, 2022. "Green Total Factor Productivity and Its Saving Effect on the Green Factor in China’s Strategic Minerals Industry from 1998–2017," IJERPH, MDPI, vol. 19(22), pages 1-20, November.
    7. Zhang, Yijun & Li, Xiaoping & Song, Yi & Jiang, Feitao, 2021. "Can green industrial policy improve total factor productivity? Firm-level evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 51-62.
    8. Shuying Wang & Yifei Gao & Hongchang Zhou, 2022. "Research on Green Total Factor Productivity Enhancement Path from the Configurational Perspective—Based on the TOE Theoretical Framework," Sustainability, MDPI, vol. 14(21), pages 1-20, October.
    9. Wen Chen & Changyi Zhu & Qi Cheung & Siying Wu & Jun Zhang & Jia Cao, 2024. "How does digitization enable green innovation? Evidence from Chinese listed companies," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 3832-3854, July.
    10. Taqdees Fatima & Bingxiang Li & Shahab Alam Malik & Dan Zhang, 2023. "The Spatial Effect of Industrial Intelligence on High-Quality Green Development of Industry under Environmental Regulations and Low Carbon Intensity," Sustainability, MDPI, vol. 15(3), pages 1-17, January.
    11. Wang, Miao & Feng, Chao, 2021. "The win-win ability of environmental protection and economic development during China's transition," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    12. Joshi, Shruti & Nath, Siddhartha & Ranjan, Abhishek, 2023. "Green Total Factor Productivity for India: Some Recent Estimates and Policy Directions," MPRA Paper 117717, University Library of Munich, Germany.
    13. Gao, Kang & Yuan, Yijun, 2022. "Spatiotemporal pattern assessment of China’s industrial green productivity and its spatial drivers: Evidence from city-level data over 2000–2017," Applied Energy, Elsevier, vol. 307(C).
    14. Ruomeng Zhou & Yunsheng Zhang, 2023. "Measurement of Urban Green Total Factor Productivity and Analysis of Its Temporal and Spatial Evolution in China," Sustainability, MDPI, vol. 15(12), pages 1-32, June.
    15. Cheng, Zhonghua & Li, Lianshui & Liu, Jun, 2020. "Natural resource abundance, resource industry dependence and economic green growth in China," Resources Policy, Elsevier, vol. 68(C).
    16. Xi Liang & Pingan Li, 2020. "Empirical Study of the Spatial Spillover Effect of Transportation Infrastructure on Green Total Factor Productivity," Sustainability, MDPI, vol. 13(1), pages 1-12, December.
    17. Xi Zhang & Rui Li & Jinglei Zhang, 2022. "Understanding the Green Total Factor Productivity of Manufacturing Industry in China: Analysis Based on the Super-SBM Model with Undesirable Outputs," Sustainability, MDPI, vol. 14(15), pages 1-16, July.
    18. Yang, Zhenbing & Shao, Shuai & Fan, Meiting & Yang, Lili, 2021. "Wage distortion and green technological progress: A directed technological progress perspective," Ecological Economics, Elsevier, vol. 181(C).
    19. Yusen Luo & Zhengnan Lu & Chao Wu & Claudia Nyarko Mensah, 2023. "Environmental Regulation Effect on Green Total Factor Productivity: Mediating Role of Foreign Direct Investment Quantity and Quality," IJERPH, MDPI, vol. 20(4), pages 1-18, February.
    20. Talat S. Genc & Stephen Kosempel, 2023. "Energy Transition and the Economy: A Review Article," Energies, MDPI, vol. 16(7), pages 1-26, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:31:y:2023:i:1:p:360-378. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.