Abstract: In recent years, the development of Internet has played an important role in promoting the productivity growth of the manufacturing industry and driving the transformation and upgrading of the manufacturing industry, and has cracked the “Solow Paradox” from the practical level. Based on the date of 30 provinces (metropolis and autonomous regions) in China from 2009 to 2018, this paper constructs an analytical framework of internet development, marketization process, and manufacturing productivity growth to conduct an empirical analysis. The results show that: firstly, the Internet development can drive the productivity growth of the manufacturing industry by significantly accelerating the product and factor marketization process; secondly, the impact of Internet development on the productivity growth of the manufacturing industries with low-and medium-tech is greater than that of manufacturing industries with high-tech, and the improvement is more obvious in the central and western regions than that in the eastern region. The Internet development plays a more significant role in promoting the product marketization process in the central and western regions, especially the factors marketization process. In order to promote the productivity of the manufacturing industry comprehensively, it is necessary to accelerate the development of the manufacturing industry with low-and medium-tech in a digital, networking and intelligent way, strengthen the high-quality integration of the Internet and the manufacturing industry in the central and western regions, and take the reform of the factor marketization as the focus to push the in-depth development of the market-oriented reform.

Key words: Internet development, manufacturing industry, productivity growth, process of marketization