The Impact of Artificial Intelligence on Total Factor Productivity in China's Manufacturing Sector
Abstract
Against the backdrop of global intelligent transformation in manufacturing, this study examines the impact mechanism of artificial intelligence (AI) on firm-level total factor productivity (TFP) using data from manufacturing companies listed on the Shanghai and Shenzhen A-share markets from 2016 to 2023. It employs a two-way fixed effects model and a mediation effects model. Findings reveal: (1) AI significantly enhances firm-level TFP through dual pathways: strengthening technological innovation and reducing operational costs;(2) Heterogeneity analysis reveals stronger AI effects in technology-intensive firms and eastern regions. Based on these findings, manufacturing enterprises are advised to deepen "AI+R&D" integration, promote technological convergence, and maximize AI's productivity-enhancing potential to accelerate intelligent transformation.
How to Cite This Article
Mengqi Deng, Lihui Sui (2025). The Impact of Artificial Intelligence on Total Factor Productivity in China's Manufacturing Sector . International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE), 6(6), 1131-1138. DOI: https://doi.org/10.54660/.IJMRGE.2025.6.6.1131-1138