Table 4.

Mechanism tests

VariableElectric power consumptionTotal factor productivityBusiness digitization
IIIIIIIVVVI
GD−0.028 (−0.81)0.097 (1.04)0.014 (0.46)
GDP−1.006*** (−7.11)−0.984*** (−6.43)−0.386** (−2.20)−0.397** (−2.25)0.631 (0.66)0.744 (0.74)
GDP_squared0.022*** (7.67)0.021*** (6.99)0.009*** (2.72)0.010*** (2.81)−0.010 (−0.55)−0.013 (−0.63)
TP0.069*** (3.52)0.071*** (3.59)0.107*** (4.75)0.102*** (4.31)0.243 (1.44)0.248 (1.45)
UR−0.287*** (−4.28)−0.253*** (−3.69)−0.151* (−1.91)−0.137* (−1.71)−0.510 (−0.94)−0.399 (−0.67)
SI−0.201*** (−3.35)−0.197*** (−3.27)−0.148** (−2.37)−0.150** (−2.38)−0.117 (−0.87)−0.124 (−0.89)
FDI0.116 (1.58)0.115 (1.57)0.196** (2.49)0.199** (2.52)−0.059 (−0.44)−0.041 (−0.29)
FFEC0.352*** (9.57)0.338*** (9.12)0.360*** (9.07)0.354*** (8.87)0.240** (2.27)0.242** (2.21)
EPC0.060*** (7.93)−0.042*** (−5.00)
GD × EPC0.009*** (3.54)
TFP0.003** (2.13)−0.040* (−1.88)
GD × TFP0.007** (2.06)
BD0.203** (2.46)−0.196** (−2.39)
GD × BD0.195** (2.23)
Constant14.467*** (8.33)14.023*** (7.46)7.377*** (3.41)7.495*** (3.44)−7.439 (−0.56)−9.107 (−0.66)
R-squared0.4380.4420.3080.3110.2880.293
Observations1,2311,231871871110110
Country FEYESYESYESYESYESYES
Year FEYESYESYESYESYESYES
Note(s):

t-Statistics are in parenthesis; ***, ** and * denote statistical significance at the 1, 5 and 10% levels, respectively

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