Impacts of internet access and use on grain productivity: evidence from Central China

The impacts of Internet use on farming productivity in China have been extensively examined. However, existing studies focus on non-grain crops and often do not distinguish between Internet access and Internet use. This study investigates the effects of both Internet access and Internet use for farming purposes on farmers' technical efficiency (TE) using data collected from 855 grain-farmers in Central China. The TE is evaluated following a stochastic frontier analysis approach. Endogenous switching regression models are used to address the potential endogeneity issue associated with Internet access or use. Our empirical results show that the use of the Internet for obtaining farming-related information is crucial for improving farmers' TE. Having access to the Internet itself does not necessarily improve TE. This is also true when considering the effects through the two channels of technology adoption and risk management. Furthermore, using the Internet for non-farming purposes could impede the improvement of TE. Heterogeneity analysis indicates that the Internet can help to reduce the discrepancy of TE among grain farmers.

Xiaohui Li, Hang Xiong, Jinghui Hao, Gucheng Li