Analysis of the income effect by the digital divide: focus on Korean farmers

The increasing demand for agricultural information and its utilization has highlighted rural residents’ information utilization capacity. However, despite Korea's well-established information infrastructure, a gap in informatization has become prominent, particularly in rural areas. Prior research has predominantly focused on the digital divide within metropolitan areas; meanwhile, the understanding of the rural digital divide remains incomplete. This study investigates the digital divide phenomenon, focusing on the environmental conditions of information in rural areas and identifying the processes and extent of economic differences resulting from the digital divide. The results indicate that information access and competency positively influence information utilization and that the information utilization level significantly impacts income levels. The results also reveal that the information gap affects income levels through the information utilization channel, implying that the digital divide has a ripple effect on social factors as well as economic equity. This study’s findings emphasize the need for effective policies to bridge the digital divide in rural areas to mitigate the economic gap caused by the information disparity.