Influence of mobile phone and internet technology on income of rural farmers: Evidence from Khyber Pakhtunkhwa Province, Pakistan

Abstract

Mobile phone and Internet technology usage (MPITU) in organizational systems are rapidly escalating. MPITU has advanced agricultural structures and has considerably revolutionized agricultural activities to enhance smart agriculture. The main objective of this research was to effectively evaluate the impact of MPITU on the selection of sales productivity and marketing channels and examine if MPITU helps increase the incomes of growers. It is crucial to understand whether MPITU can ultimately increase the incomes of rural farmers. This study used data set of 580 wheat growers from four districts in the Khyber Pakhtunkhwa Province (KPK) of Pakistan. We used propensity score matching (PSM), ordinary least squares (OLS), and Heckman's two-step regression (HTSR) techniques to achieve the research goals. The larger the MPITU, the more substantial and positive the impact on agricultural income. After applying the PSM and Heckman regression methods, it was found that MPITU significantly improved the efficiency of selecting sales channels. Its impact on agricultural profits was also leading (about 41%), with support and non-agricultural profits exceeding 31%. Finally, the results showed a significant impact of the choice of favorable auction and marketing channels on the rural farmer’s income. It is recommended that government and non-governmental organizations improve the rural and agricultural development policies. In addition, the authorities should expand MPITU training services for farmers, including wheat growers, which may help improve growers' ability to increase agricultural productivity and household income.