Digital Economy and Inclusive Development of New Agricultural Operating Entities

ABSTRACT New agricultural operating entities (NAOEs) are essential agricultural players. With the development of the digital economy in the agricultural sector, both opportunities and challenges may arise for the NAOEs. This study examines the effects of the digital economy on the performance of NAOEs by using a comprehensive dataset containing information on nearly the entire population of family farms, farmer cooperatives and agricultural companies from 2013 to 2020 in China. The mechanisms and inclusiveness of these effects have also been explored. Our results find that the digital economy positively impacts NAOEs' performance in terms of sales revenue and profit. These effects are realised by improving agricultural inputs and market transaction conditions. The effects are more profound for farmer cooperatives, agricultural companies and NAOEs with lower profitability and larger organisation size. The magnitude of the effects is larger for NAOEs located in regions with better topographic, economic conditions and higher digital economy levels. In addition, the synergy between traditional and digital infrastructures can enhance these effects. The conclusion provides insights and guidance for encouraging the high‐quality and inclusive development of NAOEs in the digital age.