What matter for farmers’ crop specialization in China

Abstract Agriculture in developing countries is undergoing a transition from self-sustaining subsistence to specialized production. It is believed that the primary barriers to market participation and specialized production for farmers are market remoteness and limited access to market information. Using evidence from China, this paper aims to examine the role of information and communication technologies (ICTs) and market extent in the process of agricultural specialization. The study finds that both the extent of market and the level of coverage and utilization of ICTs contribute positively to crop specialization. Furthermore, the complementary relationship between these factors indicate that ICT adoption enhances specialization for farmers distant from markets. Further analysis shows that the extent of market and ICTs facilitate farmers’ transition towards specialization by fostering commercialization, mechanization and intensification. This study highlights the significance of market extent and information access for agricultural transformation. Therefore, it is important for policymakers to expand infrastructural coverage (especially roads and communication networks), enhance market information services, and promote ICT adoption among rural farmers.