Exploring the influence of internet technology adoption on the technical efficiency of food production: insight from wheat farmers

Abstract

Digital technology plays a crucial role in advancing sustainable farming and ensuring food security, especially in developing countries. This study evaluates the impact of Internet technology usage on technical efficiency in crop productivity, using data from 600 wheat farmers in rural Pakistan. It addresses the imperative need to enhance agricultural practices within the context of sustainable food production. To achieve this, a matched sample of Internet users and non-users was formed through propensity score matching. The study employs the stochastic frontier method with sample selection adjustment, ensuring a robust evaluation of technical efficiency between these groups. The findings reveal a positive influence of Internet usage on efficiency, persisting even after mitigating self-selection bias from observed and unobserved factors. Internet users exhibit a technical efficiency score of 0.62, surpassing the 0.55 score of non-users. Quantile regression analysis exposes varying impacts of Internet usage on technical efficiency, with less efficient farmers experiencing substantial improvements. Widespread Internet adoption holds the potential to significantly enhance agricultural production for growers. The research underscores the role of promoting Internet utilization to stimulate growth and improve farming efficiency within the evolving digital economy. Policymakers are advised to promote the adoption of modern technology to enhance crop production and support economic growth.