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This paper discusses the theoretical application mechanism of digital transformation to total factor productivity from the direct and indirect effects, and constructs enterprise digital transformation indicators based on the data of A-share listed companies from 2010 to 2022 for empirical analysis. The findings are as follows: First, enterprise digital transformation significantly promotes the increase of total factor productivity, and this conclusion passes multiple robustness tests. Secondly, the digital transformation of enterprises mainly enables the improvement of total factor productivity through direct effects and indirect effects of reducing internal control costs and external transaction costs. Finally, the empowering effect of enterprise digital transformation on total factor productivity is more obvious in service industries, technology-intensive, capital-intensive, competitive industries, large-scale enterprises, and emerging enterprises.
Liu et al. (Mon,) studied this question.
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