How Does Digital Economy Promote Agricultural Development? Evidence from Sub-Saharan Africa

Abstract

Understanding the impact of the digital economy on agriculture in developing countries holds significant importance in enhancing agricultural production and addressing hunger-related challenges. This study uses panel data of 35 SSA countries from 2006 to 2021 and investigates the relationship between digital economy and agriculture using dynamic regression models. The impact mechanism is also analyzed using mediating models. The results show that the digital economy has a positive impact on agriculture through the increase of agricultural productivity, human capital accumulation and the improvement of government governance. The effects of the digital economy are larger in countries with higher and lower levels of agricultural development, significant in middle-income countries, and insignificant in low-income countries. This study may provide a better understanding of the nexus between digital economy and agricultural development, and offer valuable insights for governments in developing nations to formulate relevant and effective policies.