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The Digital Economy and Total Factor Productivity of the Manufacturing Industry: From the Perspective of Subdivided Manufacturing Sectors

Author

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  • Xinxin Chen

    (School of Economics & Management, Southeast University, Nanjing 211189, China)

  • Jun Shao

    (School of Economics & Management, Southeast University, Nanjing 211189, China)

Abstract

Global economic change and technological development have made the digital economy a key force for economic growth. With its innovation, penetration, and integration, the digital economy has penetrated into all aspects of the manufacturing industry, bringing opportunities and challenges to the manufacturing industry. Based on the development level of China’s digital economy and manufacturing industry data from 2001 to 2023, using DEA–BCC–Malmquist, this paper studies the impact of the digital economy on the total factor productivity of the manufacturing industry. It is found that the development of the digital economy impacted the total factor productivity of the manufacturing industry, in which cost and innovation research and development played an intermediary effect, and the digital economy has shown a more positive push in technology-intensive and labor-intensive industries than in capital-intensive ones. Based on the findings, this research is designed to empower the manufacturing sector to capitalize on emerging digital economy opportunities while advancing sustainable development goals.

Suggested Citation

  • Xinxin Chen & Jun Shao, 2025. "The Digital Economy and Total Factor Productivity of the Manufacturing Industry: From the Perspective of Subdivided Manufacturing Sectors," Sustainability, MDPI, vol. 17(7), pages 1-27, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:7:p:3127-:d:1626009
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