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New mechanisms for increasing agricultural total factor productivity: Analysis of the regional effects of the digital economy

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  • Hu, Yuanhong
  • Liu, Jing
  • Zhang, Shuyu
  • Liu, Yuxin
  • Xu, Haixin
  • Liu, Pengling

Abstract

The digital economy has introduced new ideas and methods for the high-quality development of agriculture, becoming a driving force for enhancing agricultural production efficiency. This manuscript utilizes balanced panel data from 1,503 counties and employs the three-stage DEA-Malmquist method to measure agricultural total factor productivity (hereinafter referred to as ATFP). Fixed effect models and mediation models are used to explore the impact and mechanisms of digital rural development on ATFP. The research findings indicate that both ATFP and digital rural development are increasing, although regional disparities exist. The eastern region has higher levels of digital rural development and ATFP compared to the central and western regions. Analysis using fixed effect models and mediation models shows that digital rural development has a significant positive effect on ATFP during the sample period, with rural inclusive finance and human capital playing a mediating role. The impact of digital rural development on ATFP varies across regions. It is more prominent in main grain-producing and main grain-consuming areas, and less significant in balanced production and consumption areas. Geographically, the impact is stronger in the eastern region than in the central and western regions. When categorized by the type of agricultural production, the impact is significant in livestock areas, while relatively smaller in planting industry areas. Based on these findings, it is recommended that local areas tailor their approach to digital rural construction and formulate agricultural production policies that leverage regional strengths and address weaknesses. Additionally, promoting the development of rural inclusive finance, cultivating digital talent, improving talent introduction policies, and expanding the rural digital talent pool are suggested to build momentum for agricultural development.

Suggested Citation

  • Hu, Yuanhong & Liu, Jing & Zhang, Shuyu & Liu, Yuxin & Xu, Haixin & Liu, Pengling, 2024. "New mechanisms for increasing agricultural total factor productivity: Analysis of the regional effects of the digital economy," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 766-785.
    • Handle: RePEc:eee:ecanpo:v:83:y:2024:i:c:p:766-785
    DOI: 10.1016/j.eap.2024.07.017
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