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Unveiling the digital revolution: Catalyzing total factor productivity in agriculture

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  • Jing He
  • Zhuangyu Wei
  • Xiaokai Lei

Abstract

Drawing upon panel data spanning the years 2011 to 2022 and encompassing 30 provinces across China, this research employs empirical methodologies, specifically the difference GMM and system GMM methods, to scrutinize the impact of the digital economy on the total factor productivity (TFP) within the agricultural sector. The study reveals a significant augmentation of China’s agricultural TFP attributable to the digital economy, a finding robust to various methodological examinations. Notably, the influential role of the digital economy on agricultural TFP is more conspicuous in the central and western regions, as well as in locales characterized by lower productivity levels. Mechanistic analysis underscores that the digital economy exerts a positive influence on agricultural TFP through the stimulation of innovation and marketization effects. Furthermore, strategic recommendations emerge from this study, advocating for the reinforcement of institutional and mechanistic reforms to cultivate an enabling external milieu for the digital economy to propel agricultural TFP. It is posited that regional development strategies should be tailored based on individual resource endowments and the extent of digital economic development. Additionally, there is a call to refine mechanisms promoting high-quality development in agriculture, with an overarching goal of comprehensively elevating agricultural TFP. The implications of this research extend to the imperative need for a nuanced and context-specific approach to advancing agricultural productivity across diverse regions in China.

Suggested Citation

  • Jing He & Zhuangyu Wei & Xiaokai Lei, 2025. "Unveiling the digital revolution: Catalyzing total factor productivity in agriculture," PLOS ONE, Public Library of Science, vol. 20(3), pages 1-20, March.
    • Handle: RePEc:plo:pone00:0318333
    DOI: 10.1371/journal.pone.0318333
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    References listed on IDEAS

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    1. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
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