Can E-Commerce Adoption Improve Agricultural Productivity? Evidence from Apple Growers in China

Abstract

E-commerce is not only a new channel through which farmers can sell agricultural products, but also an important engine for transforming agricultural development and modernizing agriculture in the era of the digital economy. Analyzing the adoption of e-commerce from the micro level to improve farmers’ production efficiency has practical value. On the basis of theoretical discussion and analysis and on the survey data of 827 apple farmers in Shaanxi Province, China, we used propensity score matching (PSM) and stepwise regression to test the effects of e-commerce adoption on agricultural production efficiency and the mechanism through which these effects occur. The results showed that e-commerce adoption has a significant positive impact on agricultural production efficiency. The allocation of agricultural factors plays a mediating role in the impact of e-commerce adoption on agricultural production efficiency. Specifically, e-commerce adoption can effectively encourage farmers to rationally allocate agricultural labor, land, and capital production factors, promote the sustainable development of the environment and contribute to creating a harmonious community atmosphere. Therefore, we propose strengthening rural e-commerce support and the publicity and guidance regarding e-commerce adoption by farmers, holding e-commerce training, and promoting the popularization of rural e-commerce to help promote the modernization of agriculture.