Abstract:
The digital empowerment of agricultural product circulation plays a significant role in the integration of the three industries (primary, secondary, and tertiary sectors) in rural areas. This paper first elucidates the mechanism of how the digitalization of agricultural product circulation affects rural three-industry integration from a theoretical perspective. Then, using panel data from 31 provinces (regions, cities) in China from 2012 to 2021, it empirically analyzes the impact of agricultural product circulation digitalization on this integration. The study reveals that: (1) Digitalization of agricultural product circulation significantly promotes the integration of the three industries in rural areas and exhibits notable regional disparities, being more pronounced in the eastern regions than in the central and western regions. (2) Apart from the positive spatial spillover effect and inertia effect inherent in the integration of rural industries, the digitalization of agricultural product circulation also contributes to spatial spillover effects. (3) The higher the level of rural human capital, the more significant is the impact of agricultural product circulation digitalization on the integration of the three industries in rural areas. Based on these findings, the paper proposes relevant policy recommendations.