This study investigates the impact of digital city competitiveness on the total factor productivity of the commercial circulation industry in 15 emerging first-tier cities in China. A Digital City Competitiveness Index was developed, with Hangzhou ranking highest. Using a two-way fixed-effects model, the study found a significant positive relationship between digital city competitiveness and total factor productivity. Urban information infrastructure investment emerged as the most significant positive factor, followed by industrial development, innovation, services, and governance. Conversely, the urban ecosystem dimension showed a negative impact. Policy implications suggest focusing on infrastructure investment, innovation, industrial clusters, enhanced urban services, public participation, and environmental conservation.

Tiantian Meng, Danni Yu, Ludi Ye, M. H. Yahya, M. A. Zariyawati