How does internet development drive the sustainable economic growth of China? Evidence from internal-structural perspective of green total-factor productivity

Ying Tian; Chao Feng

doi:10.1016/j.scitotenv.2023.164125

How does internet development drive the sustainable economic growth of China? Evidence from internal-structural perspective of green total-factor productivity

Sci Total Environ. 2023 Aug 20:887:164125. doi: 10.1016/j.scitotenv.2023.164125. Epub 2023 May 12.

Authors

Ying Tian¹, Chao Feng²

Affiliations

¹ School of Environment and Natural Resources, Renmin University of China, Beijing 100872, China.
² School of Economics and Business Administration, Chongqing University, Chongqing 400030, China. Electronic address: littlefc@126.com.

PMID: 37182779
DOI: 10.1016/j.scitotenv.2023.164125

Abstract

Clarifying internal-structural transmission paths of internet development on China's green total-factor productivity (GTFP) is of great significance for understanding China's economic growth in the era of digital transition. In this paper, GTFP is decomposed by three-hierarchy meta-frontier DEA into technology, industrial structural, regional balance development, scale, and management efficiencies based on China's provincial data. Then, dynamic GMM models are applied to investigate the internal-structural effect of internet development on GTFP. The results illustrate that internet development significantly improves GTFP by promoting technology, optimizing industrial structural, and advancing scale efficiencies. But it inhibits regional balance development and management efficiencies. Based on the results, this study offers new insights and valuable policy implications for China to promote sustainable economic growth.

Keywords: Green total-factor productivity; Internal-structural perspective; Internet development; Three-hierarchy meta-frontier DEA.