Total Factor Productivity: A Study on Digital Finance Development of Some Enterprises in Chinese Economy

Total Factor Productivity (TFP) is a crucial indicator for measuring economic production efficiency and a key determinant of whether China's economy can achieve high-quality development. As a new form of technology-driven empowerment, digital finance serves as a cornerstone of digital economic development and exerts a significant impact on enhancing the TFP of Chinese enterprises. In order to explore the impact mechanism of digital finance in the total factor productivity of Chinese enterprises, this study utilizes data from A-share listed companies in Shanghai and Shenzhen, covering the period from 2011 to 2018. By employing two TFP estimation methods, namely the OP (Olley-Pakes) method and the LP (Levinsohn-Petrin) method, it explores the empowering effect of digital finance on enterprise TFP. The main research conclusions of this paper are as follows: Empirical results demonstrate that the development of digital finance has a positive empowering impact on enterprise TFP, and this conclusion remains valid even after addressing endogeneity issues and conducting robustness tests. Heterogeneity tests reveal that digital finance exerts a more pronounced empowering effect on the TFP of non-state-owned enterprises. Therefore, during this critical transition period, China should vigorously promote the development of digital finance, foster the integrated innovation of the digital economy and the real economy, and thereby advance the high-quality development of China's economy. The significance of this study lies in effectively expanding the theoretical boundary of the current research field and deepening the study on the external influencing factors of enterprise productivity theory. Specific recommendations put forward in this study include: strengthening the construction of digital financial infrastructure; enhancing the cultivation of talents in the financial sector; improving the digital financial regulatory system; and seizing development opportunities.