Technological integration and economic growth: a case study of Xinjiang’s agricultural sector

The technological changes play a vital role in changing agriculture and generating economic growth, particularly in the underdeveloped areas. In China, the majority of industrial digitalisation accounts for more than 80% of the internet economy; however, the penetration rate of digital agriculture is relatively low at 9.7%. This study examines Industrial Transfer (IT) and digital Agricultural Modernisation (AM) in Xinjiang, exploring how digital technologies can enhance production, increase efficiency, and promote competitiveness. This study used primary survey data from 200 respondents across 14 prefectures (1994–2024), complemented by secondary economic and agricultural data. Fixed-effects results show that industrial transfer and digital integration significantly enhance agricultural productivity, expand agro-based markets, improve resource efficiency, increase farmers’ income, and generate employment. Government-supported IT infrastructure and digital platforms exert both direct and indirect effects on economic transformation. The study also distinguishes between the impacts on perishable agricultural products and processed agro-industrial goods. Methodologically, it contributes by empirically assessing digital agriculture as a driver of regional economic transformation using mediation analysis and a multidimensional Economic Transformation (ET) index, offering insights into inclusive growth in emerging regions.