The impact of internet development on green total factor productivity in China’s prefectural cities

Abstract

This paper uses the global Malmquist-Luenberger index to measure the effect of Internet development on the green total factor productivity (GTFP) of China’s 283 prefectural cities. We find that by promoting high-quality development, the effect of Internet is significantly positive. Firstly, we explore the two mechanisms through which the use of the Internet promotes GTFP: improvements in the quantity and quality of urban innovation and the advancement and rationalization of urban industrial structures. Secondly, we compare the pre- and post-impacts of the Internet + initiative from which it draws critical policy implications. Finally, threshold regression shows that when urban Internet penetration and employee wages rise to their respective threshold levels, the promotion effect of the Internet on GTFP can be further augmented. Meanwhile, from the perspective of Intensive Growth Theory, the Internet’s contribution to green labor productivity is more pronounced.