The impact of digital capability on agricultural product sales: evidence from China

Digital capability is a crucial skill for farmers’ output in the context of the digital economy, and the marketing of agricultural products has long been a significant topic in agricultural economic studies. This study measures the level of digital competence of farm households from three dimensions—digital access conditions, digital information acquisition ability, and digital application ability—based on data from the 2020 China Rural Revitalization Survey (CRRS). It also empirically investigates the mechanism of the role of digital competence on the sale of agricultural products. In contrast to previous research that just looks at green transformation or production efficiency, this study employs a dual mediation model to show the intricate relationships between digital capabilities and agricultural product sales. The results show that raising farmers’ level of digital competency can effectively boost sales of agricultural products; this effect is particularly noticeable for young farmers, large-scale farmers, and farmers in hilly areas. The mechanism analysis also demonstrates that increasing farm households’ digital capabilities can boost agricultural product sales through two different avenues: increasing agricultural production efficiency and encouraging farmers to practice green production to improve the quality of their products, which will increase sales revenue. The paper’s findings highlight the significance of digital competency in agricultural development and urge farmers to be able to capitalize on digital rural development opportunities to increase their revenue.