Impact of digital transformation in agribusinesses on total factor productivity

Abstract In the era of the digital economy, digital transformation is becoming essential for microeconomic entities to achieve high-quality development. This study utilizes A-share listed agribusinesses from 2007 to 2022, constructing a micro-level digital transformation index through textual analysis. It empirically examines the impact and mechanism of digital transformation on total factor productivity. Our findings indicate a positive effect of digital transformation on total factor productivity, considering endogeneity and other issues. The impact mechanism reveals that digital transformation enhances risk-taking ability, alleviates information asymmetry, and decreases financing constraints, thereby promoting total factor productivity (TFP). Heterogeneity analysis demonstrates varied impacts on ownership, industry, size, and region. This study provides an empirical basis for the high-quality development of agribusinesses and informs policy formulation from the perspective of agribusiness digital transformation.