Unlocking common prosperity through digital agricultural innovation: evidence from urban China with threshold effects

Addressing inequality through digital innovation in agriculture has become a critical issue in global development. This study examines how digital agricultural innovation affects common prosperity using panel data from Chinese prefecture-level cities. To capture contextual heterogeneity, we adopt a panel threshold model and construct the digital infrastructure threshold variable using policy text mining techniques based on local government work reports. Results show a significant positive impact, robust across various specifications. Threshold effects of digital infrastructure, agricultural productivity, and R&D expenditure reveal a nonlinear relationship. The findings underscore the importance of technological capacity in promoting inclusive growth and offer empirical support for China's development strategy, providing policy insights for other developing countries pursuing digital transformation in agriculture.