Digital Technology and Agricultural Production Agglomeration: Mechanisms, Spatial Spillovers, and Heterogeneous Effects in China

Jiabin Han (), Wenbin Wei, Wenting Ge, Shuyun Liu and Yixiu Chou
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Jiabin Han: Department of Business Administration, Liaoning Technical University, Huludao 125105, China
Wenbin Wei: Department of Business Administration, Liaoning Technical University, Huludao 125105, China
Wenting Ge: Department of Business Administration, Liaoning Technical University, Huludao 125105, China
Shuyun Liu: College of Economics and Management, China Agricultural University, Beijing 100107, China
Yixiu Chou: Department of Language, The University of Sydney, Sydney, NSW 2006, Australia

Sustainability, 2025, vol. 17, issue 10, 1-23

Abstract: Agricultural production agglomeration is pivotal for improving productivity and resource efficiency in the agricultural sector. The rapid advancement of digital technologies, including precision farming systems, agricultural big data analytics, and IoT-based monitoring tools, provides a new impetus to strengthen this trend. Through using a series of empirical models such as two-way fixed effects and spatial econometric models, this study systematically evaluated the impact of digital technology on agricultural production agglomeration based on panel data from 2012 to 2022 in China. The results indicated that digital technology significantly promotes agricultural production agglomeration by facilitating land transfers and enhancing rural human capital. Moreover, the estimated coefficient was 0.273 and significantly positive at the 5% level, and a series of robustness tests showed that the robustness of this argument was not interfered with by endogenous issues. Furthermore, the influence of digital technology on agricultural production agglomeration exhibits significant spatial spillover effects, with direct effects outweighing indirect ones. A heterogeneity analysis showed that the effect is more pronounced in non-grain-producing regions and in the eastern, central, and northeastern parts of China but remains statistically insignificant in the western region. Based on these findings, the study recommends advancing region-specific digital integration, expanding rural digital infrastructure, and fostering digital competencies to accelerate agricultural production agglomeration and promote sustainable agricultural development.

Keywords: digital technology; agricultural production agglomeration; productivity and efficiency; land transfers; rural human capital; spatial spillover effects (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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