The effect of digital government on corporate total factor productivity

Shihao Chen, Xiaojun Wang, Tian Gan and Guanqi Gui

PLOS ONE, 2024, vol. 19, issue 9, 1-27

Abstract: This study examines the influence of digital government initiatives on corporate total factor productivity (TFP). Employing a difference-in-differences (DID) methodology and analyzing data from publicly listed companies spanning the period 2010 to 2020, we investigate the impact of digital governance on corporate TFP. Our findings reveal a noteworthy positive effect, with an average TFP increase of 5%. Further exploration through heterogeneity analysis indicates that this impact is particularly pronounced in regions with robust network infrastructure, increased marketization, and decreased economic uncertainty, particularly among privately-owned enterprises. Moreover, we identify key mechanisms through which digital governance fosters this enhancement in TFP, including the facilitation of technological innovation, efficient allocation of high-skilled labor, and improved investment efficiency. Our research underscores the significant role of digital government initiatives in bolstering corporate TFP and contributes to a deeper understanding of the mechanisms underlying this relationship.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0308093 (text/html)
https://journals.plos.org/plosone/article/file?id= ... 08093&type=printable (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0308093

DOI: 10.1371/journal.pone.0308093

Access Statistics for this article

More articles in PLOS ONE from Public Library of Science
Bibliographic data for series maintained by plosone ().