The Impact of Internet Use on Land Productivity: Evidence from China Land Economy Survey

Abstract

Enhancing land productivity is a crucial strategy for addressing key sustainable development issues, such as poverty reduction and ensuring food security. Farmers’ Internet use behavior offers the potential to improve land productivity. However, relatively little is known about the association between Internet use and land productivity. To fill this void, this study examines the impact of Internet use on land productivity and its mechanisms. The results indicate that farmers’ use of the Internet has a positive impact on improving agricultural land productivity. Internet use increases land productivity by 12.3%, and the conclusion still holds after a series of robustness tests and endogeneity tests. Heterogeneity analysis indicates that Internet use significantly enhances land productivity in the central and northern parts of Jiangsu Province, while it does not have the same effect in the province’s southern regions. Without the addition of county fixed effects, the central sample regression results show that the coefficient for Internet use is 0.165 and significant at the 10% confidence level. When county fixed effects are added, the coefficient decreases to 0.117 and is not significant. The coefficient on Internet use for the northern sample is 0.128 and is significant at the 5% confidence level. Mechanistic analyses demonstrate that Internet use also enhances land productivity primarily by expanding the cultivated land area, facilitating mechanized production, and strengthening farmers’ social networks. The results of the study indicate that the positive effects of Internet use in improving land productivity should be fully released by strengthening the communication infrastructure, further enhancing farmers’ Internet use capacity, improving the land transfer system, upgrading the socialized service level of agricultural machinery, and strengthening agricultural financial support.