Digital Economy and Farmers’ Price Information Responsiveness

Based on a survey of 1220 kiwifruit growers in Shaanxi and Sichuan provinces, China, this study employs the Lewbel instrumental variable approach with 2SLS regression to examine the impact of digital economy participation on farmers’ information capabilities. The results reveal the existence of a capability trap in digital development. Initial participation significantly improves information acquisition capacity, but deeper engagement impairs information judgment ability due to information overload. The study also finds unexpected effects of traditional advantage factors. Higher education weakens the positive effect of digital participation on information acquisition. Extensive social networks intensify the negative impact of digital use. Only income demonstrates a protective effect, mitigating the damage to judgment ability from digital engagement. Spatial analysis indicates no significant spillover effects from digital economy development. Importantly, only information judgment, not mere information acquisition, significantly improves agricultural income. These findings highlight the need for differentiated digital strategies that move beyond basic access promotion to enhance farmers’ information processing capabilities.