The impact of digital government services on manufacturing productivity: China's pilot city insights

Cheng Yu, Dengyun Gao and Haixia Sun

Finance Research Letters, 2025, vol. 73, issue C

Abstract: China's Internet + Government Service pilot cities (I + GS PCs) policy is a significant approach for fostering the digital transformation of government services in China, but the policy's impact on firms’ total factor productivity (TFP) remains unknown. This study finds that the I + GS PCs policy indeed improves manufacturing firms’ TFP by reducing transaction costs, enhancing resource allocation efficiency and strengthening digital innovation capabilities, and this effect is heterogeneous across firms. Our study contributes to the body of research on the relationship between digital government and firm performance and has certain policy implications for promoting governments’ digital transformation.

Keywords: Internet + government services; Digital government; Total factor productivity; China (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016295

DOI: 10.1016/j.frl.2024.106600

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