This paper examines how digital infrastructure affects agricultural upgrading in China’s edible fungi industry, focusing on the divergence between output expansion and unit value enhancement. Using a balanced panel of 28 Chinese provinces from 2019 to 2024, we apply a Two-Stage Least Squares (2SLS) approach, instrumenting digital infrastructure with the 1984 provincial fixed-line telephone penetration rate (first-stage F-statistic = 82.15) to address endogeneity concerns. The results reveal a clear asymmetry between quantity and quality outcomes. Digital infrastructure significantly increases total output (coefficient = 1.540, p < 0.01), primarily through improved market coordination rather than productivity gains. However, it produces no statistically discernible effect on unit output value. This divergence suggests that agricultural digitalization follows a stage-dependent pattern: basic connectivity effectively relaxes constraints on production scaling but is insufficient on its own to shift producers toward higher-value activities. Consequently, scale expansion may proceed without corresponding value creation, raising concerns for long-term economic and environmental sustainability. Achieving genuine agricultural upgrading therefore requires complementary investments in institutional capacity, downstream processing, and brand development alongside digital infrastructure deployment.
Jia et al. (Fri,) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: