Digital Infrastructure and Agricultural Total Factor Productivity: A New Structural Economics Perspective on the “Broadband China” Policy

Abstract

This study investigates the impact of the “Broadband China” pilot policy on agricultural total factor productivity (TFP) from a new structural economics (NSE) perspective. Using panel data from 297 Chinese cities (2000–2024), we employ a spatial difference-in-differences (SDiD) approach. We find that the policy significantly enhances agricultural TFP by approximately 25.8 percentage points in treated cities. We identify international internet users as a novel partial mediator, explaining why domestic broadband gains depend on international connectivity. We also provide evidence of positive spatial spillovers: a 1% increase in neighboring cities’ digital economy is associated with a 0.292% increase in local agricultural TFP. Heterogeneity analysis reveals stronger policy effects in less-developed regions (Northwest China, low-GDP areas) and areas with higher scientific expenditure. By integrating institutional and spatial structures into the NSE framework, this study contributes a nuanced, endowment-contingent understanding of how state-led digital infrastructure investment reshapes agricultural efficiency.