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Digital Economy and Industrial Structure Transformation: Mechanisms for High-Quality Development in China’s Agriculture and Rural Areas

Author

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  • Jingruo Liu

    (School of Economics, Shandong University of Finance and Economics, Jinan 250014, China)

  • Xiuju Feng

    (School of Business, Shandong University of Political Science and Law, Jinan 250014, China)

  • Jianxu Liu

    (School of Economics, Shandong University of Finance and Economics, Jinan 250014, China
    Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand)

  • Woraphon Yamaka

    (Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand)

Abstract

The digital economy’s transformative impact on agriculture presents both opportunities and challenges for China’s pursuit of high-quality agricultural and rural development. This study investigates the complex interplay between digital economy, industrial structure transformation, and agricultural advancement using panel data from 31 Chinese provinces spanning 2012–2021. We employed mediation analysis and threshold effect models to uncover several key findings: (1) The digital economy influences high-quality agricultural and rural development through the dual-mediating mechanisms of industrial structure intensification and upgrading in China. (2) These mediating effects exhibit heterogeneous patterns: while industrial intensification positively channels the digital economy’s impact, industrial upgrading shows an initial negative indirect effect, suggesting potential short-term disruptions. (3) The relationship between digital economy and agricultural development is nonlinear, characterized by significant threshold effects. The digital economy’s positive impact becomes more pronounced as industrial structure surpasses certain sophistication and advancement thresholds. Our findings reveal the nuanced dynamics of digital-driven agricultural transformation, highlighting the need for targeted policies that leverage industrial-structure changes while mitigating potential adverse effects. This research contributes to a more comprehensive understanding of how digitalization can be harnessed to promote sustainable and high-quality agricultural and rural development in China, with implications for other developing economies navigating similar transitions.

Suggested Citation

  • Jingruo Liu & Xiuju Feng & Jianxu Liu & Woraphon Yamaka, 2024. "Digital Economy and Industrial Structure Transformation: Mechanisms for High-Quality Development in China’s Agriculture and Rural Areas," Agriculture, MDPI, vol. 14(10), pages 1-19, October.
    • Handle: RePEc:gam:jagris:v:14:y:2024:i:10:p:1769-:d:1493429
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    References listed on IDEAS

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    1. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
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    3. Xingmei Jia, 2023. "Digital Economy, Factor Allocation, and Sustainable Agricultural Development: The Perspective of Labor and Capital Misallocation," Sustainability, MDPI, vol. 15(5), pages 1-19, March.
    4. Yunsi Chen & Sumin Hu & Haoqiang Wu, 2023. "The Digital Economy, Green Technology Innovation, and Agricultural Green Total Factor Productivity," Agriculture, MDPI, vol. 13(10), pages 1-15, October.
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