The Impact of Digital Transformation on Total Factor Productivity

Amid the rapid construction of a new development paradigm, digital transformation has emerged as a critical driver of social progress and economic development. This paper examines the impact of digital transformation on corporate total factor productivity (TFP) based on annual data from A-share listed companies from 2010 to 2023. The study reveals that digital transformation significantly enhances TFP, a conclusion supported by various robustness tests. Furthermore, digital transformation empowers TFP growth by reducing information asymmetry and alleviating financing constraints. Heterogeneity analysis indicates that large enterprises and highly profitable firms tend to exhibit stronger digital transformation capabilities, resulting in more pronounced TFP improvements. This study provides valuable insights for fostering new productivity dynamics and promoting high-quality corporate development.