How does internet development drive the sustainable economic growth of China? Evidence from internal-structural perspective of green total-factor productivity.

Clarifying internal-structural transmission paths of internet development on China's green total-factor productivity (GTFP) is of great significance for understanding China's economic growth in the era of digital transition. In this paper, GTFP is decomposed by three-hierarchy meta-frontier DEA into technology, industrial structural, regional balance development, scale, and management efficiencies based on China's provincial data. Then, dynamic GMM models are applied to investigate the internal-structural effect of internet development on GTFP. The results illustrate that internet development significantly improves GTFP by promoting technology, optimizing industrial structural, and advancing scale efficiencies. But it inhibits regional balance development and management efficiencies. Based on the results, this study offers new insights and valuable policy implications for China to promote sustainable economic growth.