How the Digital Economy Promotes High-Quality Agricultural Development by Improving Agricultural Efficiency

Abstract

This study examines whether and how the digital economy promotes high-quality agricultural development in China. Using provincial panel data for 30 provinces from 2005 to 2020, it constructs a multidimensional index covering development scale, efficiency, benefits and cost, and estimates fixed-effects, geographically weighted regression and spatial Durbin models. The results indicate that the digital economy is positively associated with high-quality agricultural development. The estimated effect is stronger in provinces with more advanced digital infrastructure and human capital, and the spatial analysis suggests positive spillovers across neighboring regions. Mechanism tests show that digitalization primarily improves development scale and benefits and also raises agricultural efficiency, while the coefficient for development cost is not statistically significant. The paper therefore recommends strengthening rural digital infrastructure, integrating agricultural supply chains, developing farmers' digital capabilities, improving technology and finance policies, and tailoring support to regional conditions. These measures can reduce information and transaction costs and support a more productive, inclusive and environmentally sustainable agricultural transformation.