Digital Factors Spur Rural Industrial Integration in China (2013\u20132021)

Digital technologies have become instrumental in advancing rural industrial integration (RI), fostering the emergence of innovative industries and novel business models, particularly through digital advancements in agriculture. This study investigates the contribution of digital factors to enhancing RI, emphasizing rural entrepreneurship and agricultural innovation. Analyzing panel data from 30 Chinese provinces spanning 2013 to 2021, we utilize a mediation model to identify the channels through which digital factors facilitate RI. Our analysis demonstrates that digital factors significantly enhances RI, notably in China's central region and major grain-producing areas. We highlight rural entrepreneurship and agricultural innovation as crucial mediators, with regional disparities in their relative importance. Specifically, rural entrepreneurship exerts a sronger mediating influence in eastern regions and non-major grain-producing areas, while agricultural innovation plays a dominant mediating role in central and major grain-producing regions. Additionally, both mediators amplify RI by capitalizing on improved digital infrastructure, technological advancement, operational efficiency, and enriched product services. Our findings advocate for intensified digital integration within rural economies, targeted enhancements in agricultural innovation, and strengthened entrepreneurial ecosystems to further elevate rural industrial integration.