An Analysis of the Influence of Digital Agricultural Determinants on Agricultural Exports in Korea

Abstract

As the instability of the global economy continues after Covid-19, international trade is finding a new turning point. In particular, through the development of information and communication technology, all industries are attempting digital transformation and establishing a new economic system. Recently, the agricultural sector is facing the challenge of strengthening export competitiveness beyond food security in each country. Amid these changes, the emergence of digital agriculture has emerged as an alternative to creating new opportunities in the global market through agriculture. This study analyzed the impact of determinants for domestic digital agriculture transition on agricultural exports and presented implications. The analysis model was set as the export supply function, and the actual economic growth rate, including the relative price of export products, and the public R&D intensity, including public R&D expenses, and the number of professional researchers were selected as determinants for the digital transformation of the agricultural sector. Looking at the analysis results, the export relative price index generally used in the export supply function was analyzed to have a positive (+) effect, but the real economic growth rate, a substitute variable for domestic demand pressure, did not show statistically significant results. In addition, among the determinants of digital agriculture, R&D costs and intensity were analyzed to have a positive effect on agricultural exports, but the number of professionals did not produce statistically significant results. Summarizing the analysis results, it is understood that the expansion of R&D and investment for digital agriculture has a direct impact on agricultural exports, and the need for active investment and development in creating a digital agricultural foundation in the domestic agricultural sector in the future.