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From endowment to engine: the rural innovation effects of China’s specialty agricultural industries

Author

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  • Li, Jingwen
  • Wang, Jie

Abstract

The development of specialty agriculture plays a vital role in unlocking rural potential. However, the impact of policy-driven agricultural industrial cultivation on rural innovation has not been systematically examined. Using panel data from 1,805 Chinese counties between 2014 and 2021, this study treats the designation of China’s Agricultural Product Advantage Zones as a quasi-natural experiment and employs a multi-period difference-in-differences (DID) approach to empirically examine the impact of specialty agricultural industries on rural innovation. The results indicate that the development of specialty agricultural industries can significantly promote rural innovation. Further analysis confirms that specialty agricultural industries stimulate regional innovation elements by increasing government expenditure on science and education, expanding the scale of innovative entities, and improving the level of digital infrastructure—all of which contribute to enhanced rural innovation outcomes. Moreover, the development of digital inclusive finance further amplifies their innovation-enhancing effects. This study offers practical insights into how policy-driven specialty agricultural industries can stimulate innovation vitality, and provides a reference development pathway for other developing countries with agricultural-terroir advantages.

Suggested Citation

  • Li, Jingwen & Wang, Jie, 2026. "From endowment to engine: the rural innovation effects of China’s specialty agricultural industries," Food Policy, Elsevier, vol. 138(C).
    • Handle: RePEc:eee:jfpoli:v:138:y:2026:i:c:s0306919225002362
    DOI: 10.1016/j.foodpol.2025.103031
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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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