Internet Use and Technical Efficiency of Grain Production in China: A Bias-Corrected Stochastic Frontier Model

This study investigates the impact of internet use on the technical efficiency of grain production among smallholders in China. Using data from 1699 smallholders, a bias-corrected stochastic production frontier model and propensity score matching are employed to estimate the effect, accounting for selection bias. Results show a statistically significant positive effect of internet use on technical efficiency, with the selection bias leading to an underestimation of this effect. The study further explores the mechanisms through which internet use improves efficiency, identifying alleviation of financial constraints, strengthening of social capital, and improved mechanization as key channels. Policy recommendations include strengthening rural internet infrastructure, providing technical training, and developing supportive policy measures to enhance farmers' access to financial support, technology assistance, and production services.

Yangqi Fu, Yuchun Zhu