Comparing the Effects of Information Globalization on Agricultural Producer Prices in Developing and Developed Countries

Abstract

Existing studies claim that the Internet of Things (IoTs) raises agricultural producer prices while others claim the contrary. Meanwhile, no studies have been conducted to investigate the impact of IoTs at the macro level, as represented by information globalization. The main objective of this study is to determine the impact of information globalization on agricultural producer prices in developing and developed countries. This study used time series data from 1991 to 2020 and cross-section data from 66 developing and 26 developed countries. The data was analyzed using two-stage least squares. The first stage of analysis shows that pesticides and farm machinery increase agricultural production in developing and developed countries, while employment in agriculture, forestry, and fishing has the opposite effect. Meanwhile, nutrient nitrogen, manure, and irrigation have differing effects on agricultural production in the two areas. The second stage of analysis shows that agricultural producer prices in developing and developed countries will rise when agricultural production, agricultural import, and human capital increase. Agricultural value-added, food consumer price inflation and population growth have varying impacts on agricultural producer prices. Meanwhile, the main variable investigated in this study, information globalization, has been proven to increase agricultural producer prices in both developing and developed countries.