How Industrial Intelligence Affects Total Factor Productivity: Evidence from China's Provincial Panel Data

Yuanchun Yu; Yudie Zhang; Kaixin Xu; Yu Fu

doi:10.6981/FEM.202509_6(9).0013

Authors

Yuanchun Yu
Yudie Zhang
Kaixin Xu
Yu Fu

DOI:

https://doi.org/10.6981/FEM.202509_6(9).0013

Keywords:

Industrial Intelligence; Total Factor Productivity(TFP); Human Capital; Positive U-Shaped Relationship.

Abstract

In recent years, the rapid emergence of industrial intelligence has drawn increasing attention to its impact on economic production efficiency. Utilizing panel data from 30 Chinese provinces spanning 2009 to 2022, this study investigates how industrial intelligence affects Total Factor Productivity (TFP). The findings reveal a positive U-shaped trend: during initial intelligence phases, substantial investments and low conversion efficiency temporarily inhibit productivity, but as technologies mature, their positive effects on production efficiency gradually manifest. Notably, industrial intelligence enhances TFP through a critical transmission mechanism - stimulating human capital upgrading by increasing demand for high-skilled labor. Regional analysis demonstrates more pronounced effects in central and western regions compared to relatively subdued impacts in eastern areas. This research provides new empirical evidence for understanding the relationship between industrial intelligence and economic growth, offering valuable insights for policy formulation.

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