10.57647/amc.2026.100112

The Moderating Impact of Development Level and Institutional Quality on the Relationship Between Digitalization and Agricultural Value Added in Islamic Countries

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  • Kiumars Shahbazi*1,
  • Khaldoon Mohammed Alwan,
  1. Department of Economics, Urmia University, Urmia, Iran

Received: 2026-01-20

Revised: 2026-02-23

Accepted: 2026-03-05

Published in Issue 2026-06-30

Copyright (c) 2026 Kiumars Shahbazi, Khaldoon Mohammed Alwan (Author)

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Shahbazi, K., & Alwan, K. M. (2026). The Moderating Impact of Development Level and Institutional Quality on the Relationship Between Digitalization and Agricultural Value Added in Islamic Countries. Agricultural Marketing and Commercialization, 10(1). https://doi.org/10.57647/amc.2026.100112
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Abstract

 The study investigates the relationship between digitalization and agricultural value added using the panels GMM method for 28 Islamic economies between 2010 and 2022 with emphasis on institutional quality and economic development level as moderating factors. To avoid some of the multidimensionality related to digitalization and governance, the composite measurement was adopted for institutional quality and digitalization through Principal Component Analysis (PCA). Empirical evidence establishes that significant positive effects of digitalization in agriculture can be registered. Institutional quality therefore, plays a vital role in maximizing the benefits emerging with digitalization, thus substantiating the argument that governance is necessary for all digital applications to achieve their greatest economic impact. On the contrary, the level of economic development shows a negative moderating impact implying that higher investments in digital infrastructure and uptake by countries may realize diminishing returns from the path of digitalization. The need for policy frameworks that are sector and context-specific emerges clearly from these results. It's in this particular dimension that the findings call for a particular focus in policy formulation within Islamic countries that may be less developed, which would mean establishing sound institutions with inclusive digital infrastructure around which digital technologies-for-the-sustainable-and-broad-based-growth-of-agriculture can be discussed.

Keywords

  • Digitalization,
  • Institutional Quality,
  • Development Level,
  • Islamic Countries,
  • Panel Generalized Methods of Moments (Panel GMM),
  • Value Added,
  • Agriculture
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