Blockchain and Firm Total Factor Productivity: Evidence from China

This paper creatively constructs blockchain development indicators using geographical characteristics to investigate the influence of blockchain development on the total factor productivity of listed companies. Our findings reveal that local blockchain development can significantly promote the improvement of the firms' total factor productivity. To alleviate endogeneity, this paper combines exogenous policy and geographic distance to construct instrumental variables. Moreover, the positive influence is more pronounced in non-SOEs, non-excess capacity industries, and samples with high initial productivity. After the robustness test, the results are still valid. The aforementioned results provide practical implications for Chinese listed companies to lay out digital business.