Digitalization and agricultural transformation in developing countries: Empirical evidence from Tanzania agriculture sector
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Date
2024
Journal Title
Journal ISSN
Volume Title
Publisher
Smart Agricultural Technology
Abstract
Agribusiness can potentially increase value for agriculture and the entire value chain, but it is hard to achieve these goals without digitalizing the sector. The transformation reforms modern technology and digital infrastructure adoption to facilitate growth and inclusively. These conditions make the agricultural digitization transformation more appealing. Therefore, using a survey of 400 smallholder farmers in four regions of Rukwa, Ruvuma, Morogoro and Tabora, this study examines the interplay between digitization and agriculture transformation in Tanzania by focusing on the determinants and effects of digitization on smallholder farmers' welfare. The study used the double hurdle model to estimate the determinants and extent of digitization adoption; the Two-stage least square (2SLS) and the Control function approach (CFA) to estimate its effects on smallholder farmers' welfare. The findings revealed that access to credit (0.17428, p < 0.01), extension services (0.52884, p < 0.01), education and government support (0.10922, p < 0.05) are key determinants for agricultural digitization. Moreover, digitization was found to influence smallholder farmers' welfare significantly. The benefits of digitization across smallholder farmers in all regions were observed in enhancing extension services (76.50 %), pest management (71.25 %), and accessibility of the market information (72.25 %), enhance an access to financial services (74.75 %). In sum, to promote digital technology adoption among smallholder farmers, policymakers in Tanzania and developing nations should prioritize financial inclusion through tailored microfinance programs, educational initiatives must integrate digital literacy, enhance extension services, subsidized technology access, and encouraging public-private partnerships to create incentives for sustainable agricultural development.
Description
A research article submitted to the smart-agricultural-technology journal, Vol. 7of2024
Keywords
Digitalization, Agricultural transformation, Precision agriculture, Smart farming, Food security, ICT services, Artificial intelligence
Citation
APA