The impact of informatization on total factor productivity and its regional differences: An empirical study based on Chinese data

Abstract

On the basis of a theoretical analysis, this paper develops an indicator framework for measuring informatization level and estimates the informatization levels of various regions in China spanning 2006 to 2019; Utilizing the DEA-Malmquist index approach, the paper estimates the TFP of various regions in China and decomposes it into technological progress and technical efficiency. The findings reveal an annually increasing level of informatization in China, with higher presence in the east and lower in the west. The influence of informatization on TFP presents a positive "U" -shaped feature, but the turning point of the eastern region is earlier than that in the central and western regions. The level of informatization also has a spatial spillover effect on TFP, similarly presenting a positive "U" shape. The article offers pertinent policy suggestions aiming to promote China's TFP through informatization.