The impact of low-altitude economy city pilot policy on enterprise total factor productivity: evidence from China

The low-altitude economy, as an emerging economic form integrating aviation technology, digital technologies, and traditional industries, has in recent years been recognized as a new engine driving economic transformation and upgrading. Drawing on endogenous growth theory and the analytical framework of emerging productivity, this study examines the impact of the low-altitude economy (LAE) city pilot policy on enterprise total factor productivity (TFP). Utilizing panel data from Shanghai and Shenzhen A-share listed companies between 2016 and 2023, we examine the underlying mechanisms using a staggered difference-in-differences (DID) approach. The results demonstrate that low-altitude economy city pilot policy significantly enhances enterprise TFP. The low-altitude economy city pilot policy can optimize capital allocation, enhance supply chain collaboration, and advance technological progress, and thereby contribute to improving enterprise TFP. Heterogeneity analysis indicates that the TFP-enhancing is more pronounced for technology-intensive and manufacturing enterprises, as well as for firms located in regions characterized by stronger intellectual property protection. This study provides empirical evidence on the micro-level mechanisms of new-type productivity from the perspective of the low-altitude economy and offers policy insights for developing economies.