Research on World Agricultural Economy

Stage-Dependent Dynamics of the Digital Economy, Agricultural Innovation, and Growth in Asia-Pacific Economies

Zhenlian Tang

Department of National Economy, Faculty of Economics, Peoples’ Friendship University of Russia named after Patrice Lumumba, Moscow 117198, Russia

DOI: https://doi.org/10.36956/rwae.v7i2.2796

Received: 29 September 2025 | Revised: 20 November 2025 | Accepted: 25 November 2025 | Published Online: 26 May 2026

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Abstract

Digital development is transforming agriculture; however, the relationship between the digital economy, technological innovation and economic growth varies significantly across stages of national development. The present study proposes a tripartite “Digital–Innovation–Growth” framework to investigate and understand its mechanism of operations. To achieve this, data from 15 Asia-Pacific economies for the period spanning 2000 to 2021 are used through a Panel Vector Autoregression (PVAR) model. This framework operates through a tripartite mechanism: First, digital infrastructure lowers information and transaction costs, which in turn helps in adopting new types of agricultural technological innovation. Secondly, innovation enhances agricultural productivity through total factor productivity enhancements. Finally, agricultural growth generates demand and surplus capital, thereby stimulating further digital investment and application. Distinct stage-dependent patterns emerge in the analysis. The results of the Granger causality tests indicate that agricultural economic growth is a significant driver of digital development. The heterogeneity analysis shows three regimes: one for the developed economies with a bi-directional reinforcement mechanism; growth-driven digitalization in emerging economies and weak systemic linkages in developing economies. The findings confirm the proposed stage-dependent framework and provide a basis for analyzing differentiated policy interventions to reduce the agricultural digital divide.

Keywords: Received: 29 September 2025 | Revised: 20 November 2025 | Accepted: 25 November 2025 | Published Online: 26 May 2026

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