A Cross-Sectional Analysis of the Relationship between Digital Technology Use and Agricultural Productivity in EU Countries

Abstract

Amidst the rapid evolution of digital technologies and their prospective implications for agricultural productivity, farmers are increasingly turning to Agriculture 4.0. As digitization permeates every facet of agriculture, the potential for boosting productivity while ensuring sustainability and resilience becomes increasingly tangible. The objective of this study is to understand how the adoption of digital technologies influences agricultural productivity within the diverse socioeconomic and agricultural landscapes of EU nations. The research of this study aims to address questions concerning the impact of digital technology use on agricultural productivity across EU countries. This study employs a robust analytical framework combining equation modeling (SEM), artificial neural networks, and cluster analysis. SEM analysis reveals significant associations and influences between digital technology use and productivity related to the total labor force across EU countries. Moreover, cluster analysis outlines distinct clusters of EU member states distinguished by varying degrees of digital technology incorporation and corresponding agricultural productivity, emphasizing the diverse socioeconomic contexts that influence these associations. These findings underscore the significance of embracing digital technology as a catalyst for enhancing agricultural productivity across EU nations. Future research could focus on devising strategies to promote the widespread adoption of digital technologies in agriculture across EU member states, and longitudinal analyses could offer insights into the dynamic relationship between digital technology use and agricultural output, informing policy interventions.