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Digital Technology and Green Development in Manufacturing: Evidence from China and 20 Other Asian Countries

Author

Listed:
  • Lin Zhu

    (School of Economics and Management, Zhejiang University of Science and Technology, Hangzhou 310023, China
    International Business School, Zhejiang Yuexiu University, Shaoxing 312069, China)

  • Xiaoming Li

    (International Business School, Zhejiang Yuexiu University, Shaoxing 312069, China)

  • Yao Huang

    (International Business School, Zhejiang Yuexiu University, Shaoxing 312069, China)

  • Fangyuan Liu

    (Business School, UCSI University, Kuala Lumpur 56000, Malaysia)

  • Chengji Yang

    (School of Public Policy and Urban Affairs, Northeastern University, Boston, MA 02115, USA)

  • Dongyang Li

    (School of Sociology and Population Studies, Beijing 100872, China)

  • Hongpeng Bai

    (College of Intelligence and Computing, Tianjin University, Tianjin 300072, China)

Abstract

The global interest in environmental protection and sustainable development has grown steadily in recent years, sparking widespread concern about green development in the manufacturing industry among governments, enterprises, and scholars around the world. Despite this heightened interest, research on the influence of the digital economy on the manufacturing industry’s green development remains scarce. This article analyzes the impact of the digital economy on the green development of the manufacturing industry and examines the role of human capital and trade competitiveness in this context. Using a two-way fixed-effects model of panel data analysis, we investigated the GTFP (Green Total Factor Productivity) of the Chinese manufacturing industry, as well as that of the overall industry and 20 other Asian countries along the “Belt and Road”. Our findings indicate a positive association between the digital economy and both the overall GTFP and the manufacturing GTFP in China. The countries situated along the Belt and Road experience a U-shaped trend in their GTFP due to the impact of the digital economy. The digital economy displays a delayed impact, and its eco-friendly value is realized, to different extents, after two sequential periods. In addition, human capital and trade competitiveness are threshold variables in the relationship between the digital economy and the green development of the manufacturing industry. When human capital exceeds a certain threshold and trade competitiveness exceeds a certain threshold, the digital economy has a positive effect on GTFP. This study offers unique insights into the impact of the digital economy on the green development of the manufacturing industry. By addressing this research gap, this study gives policymakers the ability to leverage these findings to promote sustainable practices across the industry. Ultimately, the valuable insights provided by this study may contribute to the ongoing efforts to advance the green development of the manufacturing industry.

Suggested Citation

  • Lin Zhu & Xiaoming Li & Yao Huang & Fangyuan Liu & Chengji Yang & Dongyang Li & Hongpeng Bai, 2023. "Digital Technology and Green Development in Manufacturing: Evidence from China and 20 Other Asian Countries," Sustainability, MDPI, vol. 15(17), pages 1-20, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:17:p:12841-:d:1224561
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    References listed on IDEAS

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    1. Shuo Wang & Yueping Zheng & Hailan Yang, 2024. "Digital economy and green total factor productivity in China," PLOS ONE, Public Library of Science, vol. 19(3), pages 1-26, March.
    2. Shiheng Xie & Jiaqi Ji & Yiran Zhang & Shuping Wang, 2025. "How Does Industrial Intelligence Enhance Green Total Factor Productivity in China? The Substitution Effect of Environmental Regulation," Sustainability, MDPI, vol. 17(17), pages 1-31, September.

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