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New-type infrastructure and total factor productivity: evidence from listed manufacturing firms in China

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Abstract

The new-type infrastructure, which leads to the reform and upgradation of the manufacturing industry, is the pillar of the modern economic system. This study looks at the impact of new-type infrastructure on the total factor productivity of firms on the basis of panel data of listed manufacturing firms in China from 2007 to 2020. This study finds that the new-type infrastructure can significantly enhance the total factor productivity of manufacturing firms. The promotion effects of new-type infrastructure on total factor productivity are heterogeneous according to the characteristics of manufacturing firms. Moreover, the effects are greater in these larger, innovative, externally competitive, and mature firms. Specifically, the new-type infrastructure encourages manufacturing firms to increase innovation activities, thereby improving corporate total factor productivity. In addition, the new-type infrastructure can enhance the efficiency of resource allocation. That is, the new-type infrastructure can increase the investment of manufacturing firms with higher market value and productivity.

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Acknowledgements

This research was funded by the Management Science Program of the Natural Science Foundation of Jiangxi Province of China (Grant No. 20232BAA10040).

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  1. School of Economics and Management, Nanchang University, Nanchang, 330031, China

    Huwei Wen & Jinxia Zhan

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  1. Huwei Wen
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Correspondence to Huwei Wen.

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Wen, H., Zhan, J. New-type infrastructure and total factor productivity: evidence from listed manufacturing firms in China. Econ Change Restruct 56, 4465–4489 (2023). https://doi.org/10.1007/s10644-023-09561-1

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