Digital transformation in agricultural economics: a global review towards sustainability and resilience

Abstract

The global agricultural sector is undergoing a profound digital shift. This article synthesizes current research to analyze this transformation, with a specific focus on its dual economic impact: boosting productivity and resilience while simultaneously exposing a persistent digital divide. Through a systematic review, the influence of key technologies like IoT, AI, and digital platforms on farm output and supply chain robustness is examined. The findings confirm significant potential for productivity gains, often in the range of 14-16%, and enhanced market resilience through digital adoption. However, these benefits are not automatic or evenly distributed. The analysis identifies a critical counter-force: a pervasive digital divide rooted in unequal access to infrastructure, resources, and skills, which creates stark disparities in outcomes between regions and farm sizes. Consequently, the study argues that the future of agricultural digitalization hinges not just on technological innovation, but fundamentally on targeted policies designed to bridge this divide and ensure an inclusive and sustainable transition. Keywords: Digital Transformation, Agricultural Productivity, Supply Chain Resilience, Digital Divide, Precision Agriculture, Economic Disparities.