Enhancing corporate total factor productivity: The dual drivers of inclusive finance and technological progress

Abstract

This study employs data from Chinese listed companies between 2011 and 2022 to explore the synergetic effects of inclusive finance and technological progress on the enhancement of corporate total factor productivity (TFP). The results indicate that both inclusive finance and technological advancements independently contribute to the elevation of corporate TFP. Moreover, technological progress acts as a crucial bridge, facilitating the positive impact of inclusive finance on corporate TFP. Additionally, the study finds heterogeneous effects of inclusive finance and technological progress on TFP improvement across state-owned and private enterprises, highlighting the need for tailored strategies to maximize productivity gains in different ownership contexts.