Spatial Differences and Influencing Factors of Industrial Green Total Factor Productivity in Chinese Industries

Suyang Xiao, Susu Wang, Fanhua Zeng and Wei-Chiao Huang
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Suyang Xiao: School of Economics, Zhongnan University of Economics and Law, Wuhan 430073, China
Susu Wang: School of Economics, Zhongnan University of Economics and Law, Wuhan 430073, China
Fanhua Zeng: School of Economics, Zhongnan University of Economics and Law, Wuhan 430073, China
Wei-Chiao Huang: Department of Economics, Western Michigan University, Kalamazoo, MI 49009, USA

Sustainability, 2022, vol. 14, issue 15, 1-24

Abstract: Based on the perspective of energy and carbon emission constraints, this paper measures and decomposes the green total factor productivity (GTFP) of China’s industries from 2003 to 2018. By applying the GTWR model, this paper also identifies the factors driving GTFP and spatial and temporal heterogeneity. The results show that (1) China’s industrial GTFP exhibits a dynamic “growth-steady-growth-decline” trend. The growth rate in eastern China is much higher than that in other regions. Technological progress is found to be the main factor contributing to GTFP growth. (2) The regional differences in GTFP are widening over time. The Gini coefficient of industrial GTFP increased year by year in the eastern and western regions, while the difference between the central and western regions showed a narrowing trend. The difference between the northeast region and other regions showed a tremendous variation. (3) We explore the spatial and temporal differences in the factors influencing the growth of industrial GTFP in China in four dimensions: factor inputs, technological progress, structural factors, and market environment. Innovation investment, urbanization level, and FDI have strong promotion effects on GTFP growth in the eastern, central, and western regions. The marginal impact of environmental governance to promote GTFP growth weakens gradually. Industrial enterprise clustering, patent application, and technology introduction exert inhibiting effects on industrial GTFP in the eastern, central, and western regions. GTFP growth in the northeast region mainly relies on capital investment and the dividend of market-oriented reform. The impact of financial support on industrial GTFP in each region turned from positive to negative after 2014. Finally, based on the spatial and temporal differences in the growth of industrial GTFP, this paper proposes some specific strategies and paths to promote the coordinated development of regional industries.

Keywords: Chinese industry GTFP; regional differences; the Dagum Gini coefficient; GTWR model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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