The impact of artificial intelligence technology application on total factor productivity in agricultural enterprises: Evidence from China

Mengqi Ding and Qijie Gao

Economic Analysis and Policy, 2025, vol. 86, issue C, 399-415

Abstract: The agricultural sector exhibits significant differences in production methods, efficiency, and models compared to other industries. The question remains whether the application of artificial intelligence (AI) in agriculture can positively impact total factor productivity (TFP). This study investigates the effect and mechanism of AI application on the TFP of agricultural enterprises, using A-share listed agricultural companies from 2011 to 2022 as the research sample. The findings reveal that AI acts as an “agricultural accelerator” for production efficiency, significantly enhancing the TFP of agricultural enterprises. This conclusion holds even after a series of robustness tests and the use of instrumental variables to address endogeneity. In terms of the impact mechanism, AI promotes TFP improvement in agricultural enterprises by enhancing innovation capacity, optimizing the human capital structure, and reducing costs while increasing efficiency. Additionally, the impact of AI is more pronounced in enterprises whose main business is edible agricultural products, larger-scale operations, private enterprises, and those located in the eastern regions. This study provides theoretical guidance for developing precise AI application plans for agricultural enterprises in China and other developing countries, and offers important policy implications for sustainable agricultural development.

Keywords: Artificial intelligence; Agricultural enterprises; Total factor productivity (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592625001055
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:86:y:2025:i:c:p:399-415

DOI: 10.1016/j.eap.2025.03.032

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().