Does Internet and Information Technology Help Farmers to Maximize Profit: A Cross-Sectional Study of Apple Farmers in Shandong, China

Fuhong Zhang, Apurbo Sarkar and Hongyu Wang
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Fuhong Zhang: School of Economics and Management, Shandong Agricultural University, Tai’an 271018, China
Apurbo Sarkar: College of Economics & Management, Northwest A & F University, Yangling 712100, China
Hongyu Wang: College of Economics & Management, Northwest A & F University, Yangling 712100, China

Land, 2021, vol. 10, issue 4, 1-18

Abstract: The adoption of Internet and Information Technology (IIT) in organizations has been growing at a staggering pace. In agriculture, IIT has emerged from the prospects of modern agricultural structure, which profoundly bring revolution in the way of agribusiness. While the impacts of IIT for selecting productive sales and marketing channels is evidenced by the substantial literature in the field, there is a crucial research scope of inclusive analytical views, especially in an economics context. The prime objective of the article is to assess the impacts of IIT for choosing a productive sales and marketing channel. Moreover, we tend to find whether the usage of IIT can eventually foster the profitability of the farmers. The empirical set of data is collected from a cross-sectional survey conducted in Shandong province, China. We utilize the Ordinary Least-Squares (OLS) regression, propensity score matching (PSM), and Heckman’s two-stage regression approaches to craft the findings. The greater extent of the use of IIT, the more significant and positive the impact of agricultural income is. After using the Heckman regression and PSM model, IIT’s use significantly increases the efficiency for selecting the sales channel, and the impact on agricultural income is also prominent (around 40%). We also find that the supporting and nonagricultural income exceeded 30%. Finally, the outcomes of the study reveal significant positive impacts for selecting productive sales and marketing channels. On the basis of these findings, it is suggested that the government and relevant departments should strengthen the construction of agricultural information platforms and websites. Authorities should also extend the training facilities of fruit farmers regarding the use of IIT, which could be useful to boost the capability of fruit farmers to develop markets and promote the value chain.

Keywords: agribusiness; improve revenue; sales channel; internet information technology; Heckman model; OLS; propensity score matching (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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