AUTHOR=Li Ying 

TITLE=How does the development of rural broadband in China affect agricultural total factor productivity? Evidence from agriculture-related loans

JOURNAL=Frontiers in Sustainable Food Systems

VOLUME=Volume 8 - 2024

YEAR=2024

URL=https://www.frontiersin.org/journals/sustainable-food-systems/articles/10.3389/fsufs.2024.1332494

DOI=10.3389/fsufs.2024.1332494

ISSN=2571-581X

ABSTRACT=The construction of digital villages is widely acknowledged as a way to achieve the "dual goals" of high quality of the agricultural and rural economy and common prosperity under the digital China strategy. Studies have explored the socio-economic benefits of different aspects of rural digitization, but few have focused on the productivity role of rural broadband development in the context of the urban-rural broadband divide. This paper examines the impact of rural broadband development on agricultural total factor productivity (TFP) from the perspective of agriculture-related loans using panel data from 31 provinces in China from 2011 to 2020. The results find that rural broadband development has a significant role in enhancing agricultural TFP. Heterogeneity analysis indicates that the productivity-enhancing effect of rural broadband development is remarkable only in the central region and the region with higher rural disposable income. Mechanism analysis points out that rural broadband development can increase agricultural TFP by influencing the share of farm-related loans. Threshold analysis further reveals that the role of increasing the share of farm-related loans on agricultural TFP is marked only after rural broadband development reaches a certain level. These findings can provide practical guidance for other developing countries in accelerating the digital transformation of villages and optimizing factor allocation to achieve high-quality agricultural development.