How does agricultural digitalization drive green total factor productivity? Evidence from rural industrial integration, data factor allocation, and spatial effects in China

Abstract

Digital empowerment accelerates cross-sectoral integration within the rural economy, driving profound structural shifts in agricultural development. Using a provincial-level panel dataset from China spanning 2012 to 2022, this study constructs comprehensive indices to assess agricultural digitalization, rural industrial integration, and data factor allocation. By employing mediation, moderation, and spatial Durbin models, this research investigates the underlying mechanisms through which agricultural digitalization affects agricultural green total factor productivity. The empirical results demonstrate that agricultural digitalization significantly enhances AGTFP, a finding that is robust to a battery of specification checks. Mechanism analysis reveals that rural industrial integration serves as a crucial partial mediator in this relationship. Furthermore, optimizing data factor allocation positively moderates and thereby amplifies the impact of agricultural digitalization on AGTFP. Spatial analysis indicates that agricultural digitalization generates positive spatial spillover effects, boosting AGTFP in both local and neighboring regions. Finally, heterogeneity analyses reveal that this positive effect is particularly pronounced in the Eastern region and in areas with high levels of urban-rural integration, and it remains robust across both major and non-major grain-producing areas. Ultimately, this study deepens the understanding of the digitalization-sustainability nexus in agriculture, underscoring the vital role of advancing rural industrial integration and optimizing data factor allocation in driving green productivity.