The effect of social sphere digitalization on green total factor productivity in China: Evidence from a dynamic spatial Durbin model

Abstract

Digitalization has been the new engine of development that drives the regional economy, but scant empirical studies investigate the linkage between the social sphere digitalization and green total factor productivity (GTFP). Based on the quantitative and comprehensive index of digitalization development, the study calculates the digital economy from the social sphere in China's 279 cities between 2011 and 2019. Besides, the impact of social sphere digitalization on GTFP is examined using the dynamic spatial Durbin model (SDM). The basic results show that the development of the digital economy in the social sphere positively influences the growth of GTFP, and there is a spatial spillover effect. Specifically, the 1% increase in social sphere digitalization will bring a 0.0705% increase in GTFP. Furthermore, influencing mechanisms of the digital economy on GTFP are examined, namely industrial structure upgrading, human capital, and technological invention effects. Last, the heterogeneity analyses show that the influencing intensity is different in Eastern, Middle, and Western cities as well as in resource-based and non-resource-based cities. Our findings provide new evidence for the relationship between the social sphere digitalization and green development, and also give managerial implications for other cities or countries that are seeking energy and emission-reduction measures.

Keywords: Digital economy; Dynamic spatial durbin model; Green total factor productivity; Social sphere digitalization; Spatial spillover effect.