The impact of digital inclusive finance on the spatial convergence of the green total factor productivity in the Chinese cities

Abstract

This paper measures the Green Total Factor Productivity (GTFP) of 279 cities in China from 2011 to 2018 based on the Global Malmquist-Luenberger (GML) index and Slacks-based Measure Directional Distance Function (SBM-DDF) method. Through different spatial econometric models, we empirically analyse the spatial convergence of the GTFP and the spatial effect of Digital Inclusive Finance (DIF) on the GTFP convergence. The results show no spatial σ convergence in the GTFP in the Total, Central, Eastern, and Western regions of China, while the gap in green development is the largest in western cities and most balanced among central cities. In China’s three regions, absolute spatial β convergence, conditional spatial β convergence, and spatial club convergence exist. The DIF can promote the spatial convergence of the GTFP, and the promotion effect is more significant in the Western than in the Eastern and Central regions. The findings are important for narrowing the regional GTFP gap and promoting regional economic synergistic development.