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Research on the Impact of Digital Finance on Green Total Factor Productivity of Cities in the Yangtze River Economic Belt

Author(s)

Yifei Xi

Affiliation(s)

School of Statistics and Mathematics, Shandong University of Finance and Economics, Jinan, Shandong, China

Abstract

As an emerging sector synergized with next-generation digital technologies, digital finance has emerged as a pivotal driver of economic digital transformation and high-quality development. Utilizing panel data from 102 cities within China's Yangtze River Economic Belt (2011–2022), this study employs a two-way fixed effects model to examine the impact of digital finance on urban green total factor productivity (GTFP) and its underlying mechanisms. The findings reveal that digital finance development significantly enhances GTFP, a conclusion robust to sensitivity checks. Mechanism analysis identifies two critical pathways: fostering green innovation and optimizing industrial structure rationalization. Further investigation uncovers a single-threshold effect in this promotional process. Heterogeneity analysis indicates more pronounced effects in smaller cities and financially underdeveloped regions. The study proposes policy recommendations to accelerate digital finance development, promote green innovation, refine industrial upgrading strategies, and implement region-specific policies, offering actionable insights for sustainable growth in the Yangtze River Economic Belt.

Keywords

Digital Finance; Green Total Factor Productivity; Green Innovation; Rationalization of Industrial Structure; Threshold Effect

References

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