How do administrative penalties for digital technologies affect the digitization of agriculture: Evidence from China

Abstract

Abstract Digital technology is a key technology for agricultural digitization, and administrative penalties are the main policy tool to regulate the behavior of enterprises. How do administrative penalties on digital technology companies (i.e., digital technology administrative penalties) affect the development of agricultural digitization? This paper applies deterrence theory and conducts empirical tests based on Chinese urban data from 2008 to 2020 to investigate the impact of digital technology administrative penalties on agricultural digitization and its mechanisms. The findings show that digital technology administrative punishment can promote the development of agricultural digitalization in three aspects: digital technology, financial support, and talent capital through deterrence. Further analysis reveals that digital technology administrative punishment can promote agricultural digitization by enhancing digital technology entrepreneurship and social risk-taking. This study provides new evidence on the impact of government legal regulations on agricultural digitization. It expands the research on the relationship between digital technology administrative penalties and agricultural digitization from a new perspective of post-punishment.