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Transforming Agriculture: Empirical Insights into How the Digital Economy Elevates Agricultural Productivity in China

Author

Listed:
  • Hao Xu

    (School of Agricultural Economics and Rural Development, Renmin University of China, Beijing 100872, China)

  • Peilin Wang

    (School of Management, Beijing Institute of Technology and Investigator, Beijing 100081, China)

  • Kai Ding

    (Beiyan Business School, Hebei Minzu Normal University, Chengde 067000, China)

Abstract

The United Nations Sustainable Development Goals (SDGs) emphasize enhancing agricultural productivity sustainably and strengthening the resilience of agricultural systems amidst rising economic uncertainties, escalating climate change risks, and geopolitical tensions. Amidst these challenges, the relentless progress of digital and information technologies heralds the digital economy as a potential game-changer for agricultural productivity. In 2023, the scale of China’s digital economy reached 7.64 trillion US dollars, accounting for 42.8% of China’s GDP, with the contribution of digital economy growth to GDP growth reaching 66.45%. As a nascent yet formidable force in the global economy, the digital economy is reshaping industries worldwide, particularly the agricultural sector. Food security and sustainability could potentially be affected by the digital economy, while agricultural productivity is a crucial element of food security and sustainability. The primary objective of this study is to investigate the extent to which the digital economy (DE) contributes to agricultural technical efficiency (ATE) in the context of China and to explore the mechanisms through which this impact is mediated and the implications for regional disparities. This study delves into the Chinese context, examining the empirical evidence of how the DE bolsters ATE utilizing provincial panel data. Key findings reveal the following: (1) DE exerts a significant and positive impact on ATE, demonstrating robust effects. (2) Marketization acts as a pivotal mediation mechanism in transmitting the positive influence of DE on ATE. (3) DE fosters convergence in ATE, narrowing regional disparities. Based on these insights, we propose strategic recommendations to mitigate agricultural production risks in agricultural productivity and propel food security and sustainability in China.

Suggested Citation

  • Hao Xu & Peilin Wang & Kai Ding, 2024. "Transforming Agriculture: Empirical Insights into How the Digital Economy Elevates Agricultural Productivity in China," Sustainability, MDPI, vol. 16(23), pages 1-20, November.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10225-:d:1527035
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