Research on World Agricultural Economy

Digital Transformation and Green Agricultural Development: Evidence from Agricultural Value Chain Integration in China

Deng Wei

Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur 54100, Malaysia; School of Economics and Management, Huizhou University, Huizhou 516007, China

Obed Rashdi Syed

Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur 54100, Malaysia

Gong Hong

College of Business, City University of Hong Kong, Hong Kong, China

DOI: https://doi.org/10.36956/rwae.v7i2.2728

Received: 12 September 2025 | Revised: 30 October 2025 | Accepted: 5 November 2025 | Published Online: 23 March 2026

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Abstract

This study examines how digital transformation promotes green agricultural development through value chain integration in China. Using panel data from 31 Chinese provinces during 2013–2023, we employ fixed effects models, mediation analysis, and moderation tests to investigate the underlying mechanisms. Results reveal that digital transformation significantly enhances green agricultural development with a coefficient of 0.298 (p < 0.01), and this effect remains robust after IV-2SLS and System GMM estimations. Value chain integration serves as a partial mediator, accounting for 27.5% of the total effect, indicating that digital platforms connect dispersed farmers with markets, standardize green production, and improve resource allocation efficiency. Environmental audit intensity positively moderates this relationship, with the marginal effect rising from 0.187 in low-audit regions to 0.468 in high-audit regions, implying that stricter supervision amplifies the green payoff of digitalization. Placebo permutation tests confirm the causal nature of these relationships, and alternative specifications, such as internet penetration as a proxy for digitalization and agricultural green total factor productivity as the dependent variable, orroborate external validity. These findings contribute to understanding sustainable agricultural transformation in the digital economy era and suggest that realizing digital technology's green potential requires the coordinated advancement of technological innovation, value-chain organization reform, and institutional arrangements. The study provides empirical evidence for policymakers to design integrated strategies promoting agricultural digitalization while strengthening environmental governance mechanisms.

Keywords: Digital Transformation; Green Agricultural Development; Value Chain Integration; Environmental Au‑ dit; China

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